AUD/USD: Pivotal point at 0.6023
Yesterday’s signals were not triggered, as the initial bullish price action took place below 0.6123.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6268.
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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6023.
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 I would take a bullish bias here if the price could get established above 0.6200 and I’d be even more bullish if it can break the resistance at 0.6268. This was a great call as the bullish move failed at the 0.6200 area, so I was correct in identifying the pivotal point, as the price has been falling ever since that failure and has invalidated the nearest support level.
It looks as if the normal bearish retracement will continue, and the logical point at which to anticipate a reversal back into the bullish trend would be the support just above the major round number at 0.6000, so I am prepared to take a bullish bias later if we get such a turn at that level.
There is nothing of high importance scheduled for today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.