AUDUSD: Top in place above 0.6800
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6800 or 0.6829.
Put 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.
Long Trade Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6747.
Put 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.
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 the longer-term odds were still with the bearish trend, but there was a “fat tail” opportunity here of a long-term buy as this could be another multi-month or even multi-year low which we just made.
This was a fairly good call as the price continued to rise, although it never retraced to 0.6747 where I saw the long entry opportunity.
The price now seems to have made a medium-term top above 0.6800 and is heading down with short-term bearish momentum. It looks likely to reach 0.6747 today and so again I look to this level as today’s pivotal point. A long trade could set up here, but I am not very optimistic about its chances for success.
I have no directional bias on this currency pair right now.
There is nothing of high importance due today concerning either the USD or the AUD.