Top Forex Brokers
My previous signal on Wednesday last week was not triggered, as there was no bullish price action when the two nearest support levels were reached that day.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken before 5pm Tokyo time Thursday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6560, $0.6595, or $0.6631.
- 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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6519, $0.6489, or $0.6438.
- Place 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 on Wednesday last week that the AUD/USD currency pair had no convincing direction, although it seemed to have found quite firm support at $0.6750 which is confluent with a major quarter number.
I thought that the best approach in this currency pair would probably be to trade a reversal from support or resistance if the FOMC release due later causes a price spike.
This could have given a profitable but limited short scalp from the resistance level at $0.6781.
The technical picture has changed quite a lot since then, and become much more bearish, as this pair has sold off quite strongly to descend to new 2-month lows, with the big round number at $0.6500 in sight.
There is not much further to go before even longer-term lows are reached.
As a key risk barometer, the Australian Dollar has been hit by stock market declines in recent days, and the downgrading of its USA rating by Fitch.
The US Dollar as a safe haven is the strongest major currency now, so there is a reason to be focused on this pair in these conditions.
Looking at the price chart below, it seems the decline is slowing a bit, but a short trade from a bearish reversal at any resistance level still looks like a good bet.
Bears should just watch out for the fact that we are now close to the big round number at $0.6500, so the support levels in that area could be strong, and hold for at least a while.
Concerning the USD, there will be a release today of Unemployment Claims data at 1:30pm London time, followed by ISM Services PMI at 3pm. Regarding the AUD, there is nothing of high importance scheduled today.
Ready to trade our daily Forex signals? Compare the best currency trading platforms in Australia worth checking out.