Yesterday’s signals were not triggered as there was no bullish price action at any of the support levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8 am New York time Thursday to 5 pm Tokyo time Friday.
Long Trade Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7041 or 0.7104.
- Put the stop loss 1 pip below the lowest recent price.
- Move 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 run.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7100 or 0.7145/50.
- Put the stop loss 1 pip above the highest recent price.
- Move 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 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 we had a bearish price channel with an obvious pivotal point at 0.7176, but that neither bulls nor bears had the upper hand.
In a sense, this was a very incorrect call as the price has fallen very strongly due to a pronounced weakness in the Australian Dollar over the past day, especially over the last few hours of the Asian session and the early part of the London session. However, I was correct that 0.7176 was pivotal in the sense that the price remained well below it and then fell.
Technically the outlook is much more bearish now, with the former bearish price channel breaking down hard and exponentially. The price has easily sliced through every support level it reached and now seems to be heading for the major round number at 0.7000.
It is quite likely that we will see still lower prices over the coming day, but a bullish bounce at 0.7004 could be a good medium to a long-term buying opportunity.
I will be very happy to take a short trade from a bearish reversal at 0.7100 if that sets up later.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of Unemployment Claims data at 1:30 pm London time.