AUD/USD analysis: strong weakness in AUD sends pair to multi-month lows
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Long entry immediately upon the next touch of 0.6827.
Put 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.
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.
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6963 or 0.6986.
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.
I wrote yesterday that this pair was breaking into multi-month bearish blue sky now below 0.6940 with every sign that the price was going to continue to fall to make lower prices.
The Australian Dollar was the weakest major currency and there were no support levels to prevent the price falling by at least another 100 pips, so the line of least resistance was clearly downwards.
There was no reason not to be bearish and I took a strongly bearish bias here.
This was a great call as the price has continued to fall to new lows. Everything I wrote yesterday applies again today.
I take a strongly bearish bias on this currency pair again today.Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 2:30am.