My previous signal on 9th November was not triggered, as there was no bullish price reaction when any of the support levels were first reached that day.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken prior to 5pm Tokyo time Tuesday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6702, $0.6723, $0.6752.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6663, $0.6624, or $0.6563.
- Place 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.
- Remove 50% of the position as profit when the price reaches 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 in my previous forecast that the AUD/USD currency pair was presenting a choppy range, but with a line of least resistance which seemed to be upwards, so I was looking for a long trade that day from $0.6486.
This was not a good call, although it was enough to keep out of trouble. The price fell, cut through $0.6486 quite easily, and kept going for a fair distance.
The technical picture now is a bit different. Although the price chart below shows we are continuing to see consolidation by this currency pair, it is a wide consolidation with plenty of price movement, between extremes of about $0.6600 to $0.6800.
The Australian Dollar has been sold off so far this week, mainly due to worries over the Chinese economy due to its zero Covid policy and the resulting unrest which has broken out in major cities against the effects of this policy. However, the support level at $0.6663 has made its presence felt although the price has not quite touched it.
This support at $0.6663 has acted as a firn and obvious pivotal point over recent days, so I think it will be very likely to hold as the low of the day, despite the deline earlier. This will give scalpers at least a chance to grab some long pips from the first bounce at this level if it is reached today.
Swing traders may well find it more profitable to wait for the price to reach more extreme levels of support or resistance before making any trades, for example the support at $0.6624 or the resistance at $0.6816.
There is nothing of high importance scheduled today concerning either the AUD or the USD.
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