AUDUSD: Medium-term bearish topping out continues
Yesterday’s signals produced a losing short trade from the first bearish rejection of the resistance level at 0.6850.
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 Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6917.
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 Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6809 or 0.6769.
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 much would probably now depend upon how the price reacted at 0.6850 so I saw that as the day’s likely pivotal point. This didn’t work out so well as we got a fake bearish rejection before the real downwards move happened. This push has also got the price below 0.6833 but that level now looks too close to be reliable.
The big picture is that the AUD is relatively bearish and the medium-term bearish topping out is continuing. This means that a continued movement down to 0.6809 looks likely to happen today or possibly tomorrow, so I would take a weak bearish bias between 0.6833 and 0.6809. The Forex market is relatively quiet right now, so there isn’t much opportunity in most currency pairs.
There is nothing of high importance due today concerning either the AUD or the USD.