AUD/USD Forex Signal: Bearish on Coronavirus Fears
AUD/USD: Pivotal point at 0.6706
Last Thursday’s signals were not triggered as there was no bullish price action at 0.6725.
Today’s AUD/USD Signals
Trades must be taken from 8am New York time Monday to 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6706, 0.6725, or 0.6781.
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.
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.
I wrote last Thursday that the most interesting technical item here was the long-term multi-year support which has now produced a triple bottom. We may be seeing a long-term low meaning this pair could be an interesting long-term buy, so I thought it worthwhile to watch very carefully how the price reacts now at support levels.
This was an OK call as the price has broken down below all the established support levels and it went on to make a new low.
We have just seen some buying, and much will now depend upon whether the obvious pivotal point at 0.6706 continues to hold. If it does, we are likely to see the price fall further to reach new multi-year lows so I would take a bearish bias if that scenario plays out. There are no obvious support levels below at all except the major round numbers, maybe.
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