My previous signal on 31st July was not triggered.
Today’s AUD/USD Signals
- Risk 0.75%
- Trades may only be entered 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 $0.6465, $0.6505, or $0.6585.
- Put the stop loss 1 pip above the local swing high.
- 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 price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6345 or $0.6299.
- Put the stop loss 1 pip below the local swing low.
- 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 price reaches 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.
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AUD/USD Analysis
I wrote in my previous AUD/USD forecast a few days ago that the AUD/USD currency pair was looking generally bearish, so I was looking for a short trade from any bearish rejection of the nearby key resistance level at $0.6514.
The pair rose that day and traded above that level quite easily, so it was a useless call.
The technical picture has become notably more bearish, with these currencies swept along by massive movements in stock markets and in the Japanese Yen, with the Japanese stock market naturally moving the most of all.
This is creating risk-off sentiment and risk-off sentiment will tend to drive this currency pair lower. The price has just been trading at a long-term low price.
There is some comfort for bulls as within the last twenty minutes (as at the time of writing), the price seems to have found support at $0.6345 with buyers clearly stepping in there.
The first hour after London opens will probably be crucial. If the price continues to advance and print a very bullish rejection of $0.6345, sellers may fear to step in.
The best opportunity today would likely be a long scalp from the $0.6345 area.
Concerning the USD, there will be a release of ISM Services PMI data at 3pm London time. Regarding the AUD, the RBA will be announcing their Chas Rate, Rate Statement, and Monetary Policy Statement at 5:30am.
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