AUD/USD: New 11-year low price reached again
Yesterday’s signals were not triggered as the price never reached 0.6623.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered prior to 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6585, 0.6607, or 0.6623.
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.
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 maintained my bearish bias as we were still seeing markets gripped by fear over the coronavirus, so I wanted to look for short trades from any bearish reversal at either 0.6623 or 0.6636.
I was correct to be bearish, although 0.6623 was never reached. The price went on to fall further and made a new 11-year low just a few hours ago.
This is a rare trading opportunity as it is not usual to see a currency with very little to support it as we see the Australian Dollar today. There are fundamental reasons for it to weaken, and as a risk currency highly exposed to Asian economies, it is in a unique position to be hit by the economic implications of the coronavirus. The coronavirus fear is not going to go away any time very soon, so the price is likely to keep falling over the coming days, with no obvious support levels to hold it up.
I simply take a bearish bias on this currency pair today.There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Private Capital Expenditure data at 12:30am London time.