AUD/USD: Pivotal point at 0.7292
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8 am New York time Thursday and 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7292 or 0.7217.
- Place the stop loss 1 pip below the lowest recent price.
- Adjust 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 ride.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7340 or 0.7363.
- Place the stop loss 1 pip above the highest recent price.
- Adjust 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 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 a further fall did look likely.
I saw the best potential trade set up as a long from a bullish bounce at 0.7292 or possibly even just the round number at 0.7300 which is obviously very close by.
This was a good call as the price did continue to fall over the past day.
The price is now almost at 0.7292 for the first time.
The U.S. Dollar is strong everywhere while the AUD has been hit by the poorer than excepted Australian GDP data release, which has put Australia into its first technical recession for many years.
Despite these bearish factors and the short-term bearish trend, the Australian Dollar is in a long-term upwards trend which still has a good chance to reassert itself.
I think that we will learn much from how the price reacts at 0.7292 which is very certain to be today’s pivotal point.
I will take a bullish bias if we get a nice bounce there at the first touch, or a bearish bias if we get two consecutive hourly closes below that level if it holds until the New York open.
A bearish break below 0.7292 will make it likely that the price will continue downwards to 0.7217 at least.
Concerning 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 regarding the AUD.