AUDUSD analysis: Temporary support holds up at 0.6827
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6827 or 0.6770.
Place 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6883 or 0.6904.
Place 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.
Remove 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 we were seeing a repeat bearish wave originating from the flipped level at 0.6882. There was no stronger trend in the Forex market than the bearish trend here. I took a bearish bias today provided the price holds below 0.6883.
This was a great call as the price continued to fall over the day and is still (at the time of writing) lower than it was 24 hours ago. There is a strong long-term bearish trend. However, it seems that the support level I have identified at 0.6827 is already making its presence felt and providing at least a temporary break in the trend. For this reason, I would only become actively bearish again if the price either retraces to at least 0.6865 before making another bearish turn, or if the price breaks below 0.6827 and stays there for a while and looks like moving down again.
There is nothing important due today concerning either the AUD or the USD.