AUDUSD: Support around 0.6800 threatens to break down
Yesterday’s signals were not triggered, as the price did not reach the support level at 0.6814 until after 5pm Tokyo time.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6862 or 0.6885.
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 0.6814, 0.6803, or 0.6781.
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 I saw a long trade at 0.6814 as the best potential opportunity, as there is a very weak medium-term uptrend. However, I thought that there were likely to be better opportunities elsewhere.
There has been little change to the technical picture over the past day, but the price has moved down to test the support level at 0.6814. So, we may see this bullish bounce still either here or at the support level just below that at 0.6803. Such a bounce could be traded long, but it looks increasingly likely that we will see a breakdown, so any long trade here should be monitored carefully on short time frames.
I think it will be best to not trade this currency pair today.
There is nothing of high importance due today concerning either the USD or the AUD.