AUD/USD: Yet key support level at 0.6404
Last Thursday’s signals were not triggered as there was no bullish price action when the support level identified at 0.6420 was reached later that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of the price channel’s upper trend line, shown in the price chart below currently sitting at about 0.6470.
Put 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 Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6404, or at the price channel’s lower trend line currently sitting at about 0.6370.
Put 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 last Thursday that the technical picture remained consolidative, so I had nothing except a possible long trade from 0.6420 which did not set up. This was enough to keep out of trouble.
The technical picture has become more bearish now, as can be seen in the price chart below, because there is now a clearly symmetrical bearish price channel. This suggests that the price is likely to move down, but we do have an obvious support level within the channel at 0.6404 which could interrupt and halt any bearish price movement.
I am prepared to take trades today in any direction from reversals at either 0.6404 or either of the price channel’s trend lines.
There is nothing of high importance due today concerning either the AUD or the USD.