AUDUSD analysis: AUD gives up post-election bounce
Yesterday’s signals were not triggered, as there was no bullish price action at 0.6891.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6827.
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 0.6891 or 0.6936.
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 despite the gap up caused by the surprise Australian election result, there was lots of residual bearishness that would probably not be broken easily, with three levels and a major bearish trend line all below 0.6986, so bears were likely to get more opportunities to look for short trades at these areas. I was ready to take a bearish bias if the price rejected 0.6936 again and turned to fall more decisively.
Unfortunately, the price topped again a few pips below 0.6936, but what is really interesting is how the price has fallen again to get to a level close to yesterday’s long-term low price.
The Australian Dollar looks bearish again and if the price can trade at 0.6860 or below for a couple of hours consecutively, I would take a bearish bias on this currency pair today with this long-term bearish trend behind me.
There is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the RBA will be giving a minor speech at 3:15am.