AUD/USD: Very Bearish
Last Thursday’s signals were not triggered as there was no bullish price action at 0.6856.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6781 or 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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6754 or 0.6744.
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 I thought the best strategy would be to wait and see whether the price could get established below 0.6856 (bearish) or above 0.6889 (bullish). This was a great and very profitable call as that level at 0.6856 was retested and proved to be perfectly pivotal to the pip.
The picture now is very bearish as the AUD as a currency gets hit very hard in such a risk-off environment as we have today, especially when it comes from a problem in China to which the Australian economy is heavily exposed.
We may see a bounce from any of these support levels, but I doubt such a bullish move would really run, so I think short trades from retracements to any resistance levels is clearly going to be the best possible strategy here.
There is nothing of high importance due today concerning either the USD or the AUD.