AUD/USD: Pivotal point remains at 0.6023
Yesterday’s signals were not triggered as none of the key levels were reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday until 5pm Tokyo time Friday.
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 it looked like a short trade would be the day’s best opportunity, but I was not certain that it would set up. Probably the best approach to take would be to take a short bias once there were two consecutive hourly closes below the big round number at 0.6000.
This was enough to keep out of trouble at least, as the price has moved sideways over the past day, but not by a great deal, and the support at 0.6023 has not even been reached yet.
I maintain my analysis from yesterday – there is still a danger that stock markets will soon begin to move sharply lower, and lead to a deterioration in risk sentiment which would drag the AUD down and boost the USD.
I would look for a short trade in this currency pair today after it has made two consecutive hourly closes below the key 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 Unemployment Claims data at 1:30pm London time.