AUD/USD: Consolidating above 0.6700
Yesterday’s signals were not triggered.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6735 or 0.6781.
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 Idea
Long entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6706.
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 it made sense to remain bullish and look for a long trade at 0.6737 today. This wasn’t a good call as it produced a losing long trade.
The AUD has been hit by the renewed concern over the coronavirus epidemic in China. The AUD is especially sensitive to general risk-off sentiment and also to China so it suffers a double hit but may bounce back.
Technically bulls and bears are very evenly matched within a relatively tight price range, so apart from the chance for a quick scalp from a bounce off a key level, I would avoid trading this currency pair today.
Regarding the AUD, there is nothing of high importance due today. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time.