Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Monday until 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6999, 0.6963, 0.6926.
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 0.7070, 0.7090, or 0.7153.
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
The U.S. Dollar has been strongly lately and remains the strongest major currency. This is partly due to the fact that the coronavirus pandemic is reaching a new peak in the U.S.A. and has reached an even worse situation in Europe, necessitating more lockdowns in European nations which will economically damaging. The same thing may well happen in the U.S. This uncertainty is helping boost safe haven assets such as the U.S. Dollar.
The Australian Dollar has been relatively weak lately for similar global risk reasons, plus the fact that the RBA is expected to cut rates again even to new record lows in the near future.
We can see that fundamentals and market sentiment should tend to push this pair lower, but the pace of the fall can be seen to have slowed in the chart below. What is so significant about this bottoming out is that it is taking place at the floor of 0.7000 which is a huge round number and major psychological level for this currency pair.
As such, this pair may be a great long-term buy at 0.7000 or close to that level if you are prepared to hold and wait for at least a few days.
Action may be messy in the near future however for two reasons: firstly, there are many support and resistance levels close by to the currency price; secondly, because there is a very major central bank release due later in the next Asian session concerning the Australian Dollar which might push the price around.
Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time. Concerning the AUD, the RBA will release its Cash Rate and Rate Statement at 3:30am.