AUDUSD: 0.6746 area still pivotal
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6746 and no bearish price action at 0.6774.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6787, 0.6800, or 0.6829.
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.
Long Trade Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6746.
Place 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.
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 the price looked like it would fall back towards 0.6746 so I again saw this as a key pivotal point. A bearish break below it might produce a sharp fall of at least another 40 pips or so. Alternatively, it may hold.
I was right about the price reaching 0.6746 and after to appearing to hold and then break down, it gave some long pips before turning bearish again and falling.
I still see this support at 0.6746 as valid and in play and I would be prepared to try to trade either a breakdown or a bullish reversal if it is hit again today.
The Australian Dollar is one of the weaker major currencies, and we have a multi-year low which was made last week as the only support below 0.6746.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be releases of Core Retail Sales, Retail Sales, and the Philly Fed Manufacturing Index at 1:30pm. London time.