AUD/USD: AUD hit by risk-off sentiment
Last Thursday’s signals produced a losing trade from the bullish pin candlestick entry on the hourly chart from the support level identified at 0.6900.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Monday to 5pm Tokyo time Tuesday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6774 or 0.6683.
- Put 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.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6912 or 0.6964.
- Put the stop loss 1 pip above the highest price made today.
- Move the stop loss to break even once the trade is 10 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 the technical picture had become less bullish, and we may have seen a long-term double top above the psychologically important round number at 0.7000.
This was a good call insofar as the price has continued to move down from the 0.7000 area, but I also saw bulls as bears as evenly matched which turned out to be wrong.
We have seen a little support in recent hours just above the support level identified at 0.6774 and this may be a mildly bullish sign. If the price retraces to this level and we get a firm bullish bounce it will be a kind of bullish double bottom so might provide a valid long trade entry.
I do not see any potential alternative good trade setups worth taking in this currency pair today.
There is nothing of high importance due today concerning either the AUD or the USD.