AUDUSD: Weakly bullish from 0.6930
Last Tuesday’s signals were not triggered, as none of the key levels were reached that day.
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 0.6965, 0.6975, 0.6992, or 0.7006.
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 0.6930.
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 long bias last Tuesday and this was partially successful as the price rose as New York opened before eventually falling back.
We have risk-off sentiment in the market now due to tension in the Middle East, and this has caused the Australian Dollar to sell off as it generally behaves as a “risk” currency. However, it seems that the risk-off sentiment is not very strong, so the Australian Dollar has been able to find some support here at the key level of 0.6930. I see this level as an important pivotal point and as long as it continues to hold as support, the outlook should remain weakly bullish. If it breaks down, that would be a bearish sign.
I would not look for any short trades here today, it feels too early – if there are any further military actions in the Middle East later, this could provide the catalyst for a sell-off so bears would be in a better position after that point.
There is nothing of high importance due today regarding either the AUD or the USD.