AUDUSD: Less bullish on poor Australian economic data
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered 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 0.6862 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 both the AUD and the USD were relatively weak currencies, so I took no directional bias and saw the best approach as likely to be scalping bounces from any support or resistance level after the New York open.
This wasn’t a bad call as all the key levels have held, in fact none of them have been reached yet at the time of writing.
The AUD is still weak, while the USD is regaining some of the ground it lost yesterday. This suggests that the support level at 0.6814 is quite likely to be hit later, which might give a chance for a long trade.
I would avoid trading this pair today and see better opportunities elsewhere for the time being.
There is nothing of high importance due today concerning either the AUD or the USD.