AUD/USD: RBA leaves rates unchanged
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6436.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6464 or 0.6473.
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 0.6327.
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 thought we would see the price consolidate today between 0.6436 and 0.6370, so a short trade from a bearish rejection of 0.6436 later could be a good short trade opportunity. I expected that the price would go sideways before the RBA’s release later in the Asian session.
I was wrong, the price traded above 0.6436 before the RBA’s release, holding up but then falling quite rapidly after getting very near to a zone of resistance which now seems to begin at 0.6464.
The Australian Dollar has seen strong gains over the past few weeks, and although the RBA left rates unchanged, its expressions earlier today have not moved sentiment clearly in any direction. The market will be waiting to see just how strongly Australia can recover economically if it is able to suppress the coronavirus, which it has had strong success with.
The best technical analysis I can give for today is that I expect the price will keep trading below the resistance level at 0.6464.
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. There is nothing of high importance due today concerning the AUD.