AUDUSD analysis: Bearish retracement to 0.7000 area
Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6976.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047.
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 last Thursday that I would take a cautious bullish bias today up to 0.7047 if the price could close above 0.7000 for three hours consecutively later. This would have given a long trade with a maximum profit of 23 pips, so it was a good call.
The price has pulled back from its gapped-up high it opened at upon the start of this week. However, the nearest support at 0.6991 has continued to hold up, which is a bullish sign. This may not be the end of the medium-term bullish trend yet, but I would prefer to enter a long trade from a bounce at 0.6975 instead of 0.6991.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.