AUDUSD: Dominant bearish trend line still holds
Yesterday’s signals produced a profitable long trade from the bullish bounce off the support level I identified at 0.6822. However, this only gave the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Ideas
⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6803, 0.6822, or 0.6862.
⦁ 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 Ideas
⦁ Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6769, 0.6754, or 0.6744.
⦁ 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 yesterday that the price was likely to continue to fall and reach the support level at 0.6769. I suggested being very careful about taking any long trade due to the bearish trend.
This was a good call as the price did fall to that level at 0.6769 where it bounced to the pip, giving a small long trade, which I was correct to be cautious over due to its relatively limited scope.
The technical picture is still bearish as the medium to long-term descending trend line continues to hold, as shown in the chart below, although we have had a bit of a bounce at the first support level as mentioned.
I’d be more bearish below 0.6769 and more bullish above 0.6803, but I still prefer short trades from resistance levels here overall. 
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
Concerning the AUD, there will be a release of Construction Work Done data at 12:30am.