Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7090, 0.7070, or 0.7000.
Place the stop loss 1 pip below the lowest recent price.
Adjust 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 ride.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7153, 0.7176, or 0.7204.
Place the stop loss 1 pip above the highest recent price.
Adjust 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 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 this pair may be a great long-term buy at 0.7000 or close to that level if you were prepared to hold and wait for at least a few days.
This was a great call as the price has risen strongly from that area. I wish I had made the call even more strongly as an immediate buy.
I was wrong about any rise being messy – in fact, the rise has been strong and fast.
The price is likely to now consolidate below the resistance level at 0.7153 until we start to get any preliminary results or rumours of results or turnout from the U.S. presidential election, as the result may affect risk sentiment. Any signs of a Biden victory are likely to push up pro-risk sentiment.
We may not get a clear result for several days or even a few weeks however, so action in this pair may become very messy and best avoided by traders after tonight’s Asian session.
Regarding the USD, voting is underway in the U.S. presidential election. There is nothing of high importance due today for the AUD.