AUD/USD: Has AUD hit its bottom?
Yesterday’s signals were not triggered as the price never retraced to 0.5962.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.5808.
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 was extremely bearish below 0.5962 and I would also take a short trade if the price reached the next higher resistance level at 0.6094. This was an amazingly profitable call as after the price broke below 0.5962 it fell by a further 450 pips which is a fall of about 8%, an astonishingly large move for the Aussie.
After this strong collapse to new 17-year low prices, as is often the case on wildly strong and highly volatile moves, the price made a strong counter trend bounce just above the key round number at 0.5500.
I think the outlook continues to look bearish for risky assets such as the AUD, but it is likely that we have seen a firm short-term of even medium-term bottom, so this pair should be watched closely but probably not traded for some hours – best to stand aside for the time being and wait for further shorting opportunities to emerge later.
It would not be smart to take any long trades.
There is nothing of high importance scheduled today regarding the AUD. Concerning the USD, President Trump will likely make an emergency broadcast sometime this evening London time.