AUD/USD: Breakdown towards 0.6500 looks likely
Yesterday’s signals were not triggered, as the price never reached 0.6635.
Today’s AUD/USD Signals
Trades may only be taken 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 0.6623, 0.6635, or 0.6662.
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 yesterday that I simply took a bearish bias on this currency pair for the day, due to the continuing risk-off sentiment stoked by fears that a coronavirus pandemic will emerge and the Australian Dollar’s negative sensitivity to these developments.
This was not a disaster, but the price did not fall yesterday and in fact has risen by a few pips over the last 24 hours.
The technical picture is still bearish and maybe even a little more so with the price failing twice at the weekend gap, which has created a new lower resistance level at 0.6623.
I maintain my bearish bias as we are still seeing markets gripped by fear over the coronavirus, so I will look for short trades from any bearish reversal today at either 0.6623 or 0.6636.There is nothing of high importance due today concerning either the USD or the AUD.