AUD/USD: 0.6706 remains a pivotal point
Yesterday’s signals were not triggered, as the price did not reach 0.6706 until after 5pm Tokyo time.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6706 or the bearish trend line currently sitting at about 0.6728 which is shown in the price chart below.
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.
Take off 50% of the position as profit when the trade is 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.
AUD/USD Analysis
I wrote yesterday that generally, I take a bearish bias on this pair, but I would want to see the price either fail to rise above 0.6700 or break below 0.6650 before getting active.
This was a good call as over the past day we have seen a bullish retracement and now a seemingly bearish failure at the key resistance level of 0.6706 as well as the round number at 0.6700.
We may now see a bearish reversal and if the price now consolidates below 0.6706 and then turns down as New York opens, that could be a great short trade entry. If 0.6706 fails to hold, there may be another chance for a short trade if we see a bearish failure at the trend line shown in the price chart below. There is a long-term bearish trend in the AUD which is worth respecting.
The FOMC meeting minutes release due later today might produce surprising price movement, so traders should be careful of that.Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time. Regarding the AUD, there will be a release of Unemployment Rate and Employment Change data at 12:30am.