AUDUSD: Bearish below 0.6882
Yesterday’s signals were not triggered as unfortunately the price never quite reached the resistance level at 0.6882.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6882 or 0.6909.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6817 or 0.6803 or 0.6781.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 the level at 0.6882 had continued to hold and so the picture remained technically bearish. I was prepared to take a bearish bias if we had gotten another bearish reversal at either 0.6882 again or at 0.6909.
This was a good call as the nearest resistance level at 0.6882 held with the high of the day just 1 pip below it, so I was accurate about the direction and about the key level.
The picture remains bearish, as although there is more risk-on sentiment which should help the AUD, the AUD is suffering from relative weakness due to fears of a coming rate cut from the RBA, and the USD is strong everywhere.
The bearish technical situation should last until at least the NFP data is released tomorrow (Friday).
I will take a bearish bias if we get a bearish bounce from 0.6882 later today.
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Retail Sales data at 12:30am London time.