AUDUSD: Bearish, but pivotal area below around 0.6800
Yesterday’s signals were not triggered, as there was no convincingly bullish price action when the support level at 0.6834 was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6862, 0.6885, or 0.6927.
⦁ 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, 0.6769, or 0.6754.
⦁ 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 I saw a break below 0.6833 and perhaps a couple of hours consecutive closes below that level as likely to be a good sign that the price would move lower, to at least 0.6809.
This was a good call by default, as the level held, so it was correctly identified.
The price now is looking bearish over the short term and seems about to break down below 0.6833 and make the move I was seeking yesterday.
The truly interesting moment will come if and when the support level at 0.6809 is reached, as this is a medium-term pivotal point. I would take a bullish bias if we get a firm bounce as soon as that level is reached, or at 0.6769, as I think the price has a good chance to travel from there back up to 0.6927 at least, offering the potential for a good reward to risk ratio.
Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.
Regarding the AUD, there will be a release of Unemployment Rate and Employment Change data at 12:30am.