AUD/USD: Looks like the price put in a medium-term bottom
Yesterday’s signals produced a short trade from 0.6562 but this looks like it will be a losing trade.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6585, 0.6607, or 0.6623.
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.
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 was difficult to say what will happen in the short term, but the Australian Dollar should remain very vulnerable and that is unlikely to change over the next few days, so I still preferred short trades at reversals at any resistance level which is reached.
This was probably the best call I could have made yesterday, although it is not working out so well – with the rebound on risk-on sentiment in major stock markets seen yesterday, it is looking more and more likely that we have seen this currency pair put in a medium or even long-term low at a 0.6434 a few days ago.
We are seeing now over the short-term what looks like being the invalidation of the resistance level at 0.6562.
It looks as if the most pivotal point here will be the next resistance level at 0.6585. If the price can get established above that, it will be a bullish sign.
Concerning the AUD, there will be a release of GDP data at 12:30am London time.
There is nothing of high importance due today regarding the USD.