AUDUSD: Pivotal point holds at 0.6885
Yesterday’s signals were not triggered, as the price did not hit the support level identified at 0.6885.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday to 5pm Tokyo time Thursday.
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 0.6885, 0.6870, or 0.6814.
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 yesterday that I direction was looking uncertain, but that the support level at 0.6885 was looking pivotal and also more likely to break down.
I was partially correct, as this level has remained pivotal but has continued to hold without breaking down. It is still difficult to say whether it will probably break down or not.
The best I can say is that I become more bullish the longer the support at 0.6885 holds and I would be more bearish if the price can get established below the current lower support level at 0.6870. If the price rises from 0.6885 and can begin to trade above the round number at 0.6900, that would indicate a more bullish situation is emerging.
There is nothing of high importance due today regarding the AUD or the USD.