AUDUSD: Consolidation between 0.6814 and 0.6862
Last Thursday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday to 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6862 or 0.6885.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6814, 0.6803, or 0.6781.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
I wrote last Thursday that that the support level at 0.6814 was quite likely to be hit later, which might give a chance for a long trade. Still, I thought it was better to avoid trading this pair that day. This was a good call as the price has just continued to range between 0.6814 and 0.6862 without either level actually being reached.
I see a long trade at 0.6814 as the best potential opportunity if we get a long bounce today, as there is a very weak medium-term uptrend. However, there are still likely to be better opportunities elsewhere.
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a minor speech by the Governor of the RBA at 10:05pm.