AUDUSD: Pivotal point at 0.6884
Last Thursday’s signals may have produced a losing trade from the doji hourly candlestick which rejected the resistance level identified at 0.6882.
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 Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6965.
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 0.6884 or 0.6817.
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 the picture remained bearish, as the AUD was suffering from relative weakness due to fears of a coming rate cut from the RBA, and the USD was strong everywhere. I was prepared to take a bearish bias if we had gotten a bearish bounce from 0.6882 and this did not work out so well, although there was initially some resistance there.
The price broke above that level which I have adjusted up a couple of pips and it looks like it will still be pivotal, but as potential support now.
I have no directional bias as the outlook here looks uncertain, but the picture would look more bearish if the price can get established below 0.6884 later.
There is nothing of high importance due today concerning either the USD or the AUD.