AUD/USD: Lots of room to fall further
Yesterday’s signals were not triggered as there was no sufficiently bearish price action at either 0.6748 or 0.6765 to trigger a short trade entry.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6781, 0.6799, or 0.6817.
- 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 0.6748 or 0.6677.
- 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 took a bearish bias today below 0.6750. This did not work out so well as the price rose from that area but seems to now be coming right as the price is falling quite firmly again after yesterday’s bullish retracement and is now back at the 0.6750 area. There is support here, but it is looking likely to break down, and I would not take a long trade here. Instead, taking a short trade once the price starts breaking below yesterday’s low firmly looks more exciting, as the price has room to fall from there all the way to 0.6677 without hitting any key support levels.
I would take a bearish bias on this currency pair today if the price gets below 0.6737 on at least average relative volatility. The Australian Dollar will continue to be weak as long as fear remains over the coronavirus outbreak in China.
Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time followed by the usual press conference half an hour later. There is nothing of high importance due today regarding the AUD.