AUD/USD: Pivotal point at 0.6023
Yesterday’s signals were not triggered, as none of the key support or resistance levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6268.
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.
Long Trade Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6023.
Place the stop loss 1 pip below the local swing low.
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.
AUD/USD Analysis
I wrote yesterday that it looked like the normal bearish retracement would 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. This was a reasonably good call as the price did move down over the day and has reached a low not far from the support level t 0.6023.
The overall market feel today is a little different, with increasing hints that stocks and riskier assets are about to get sold off again, and the AUD is a risky asset or at least usually behaves like one. Therefore, I see a short trade as the best opportunity, but I am not certain that it will set up. Probably the best approach to take will be to take a short bias once there are two consecutive hourly closes below the big round number at 0.6000.
There is nothing of high importance scheduled for today concerning the AUD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI numbers at 3pm.