AUD/USD: New 11-year low price
Yesterday’s signals were not triggered, as unfortunately the resistance level at 0.6706 was not reached again.
Today’s AUD/USD Signals
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6662 or 0.6706.
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.
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.
Great trade opportunities are waiting – don’t wait to profit from this pair!
I wrote yesterday that if the price now consolidates below 0.6706 and then turns down as New York opens, that could be a great short trade entry. There was a long-term bearish trend in the AUD which is worth respecting.
This was a good call as we did get a retracement then a swing down from near the 0.6700 area. An hour or so before the time of writing, the price reached a new 11-year low which is a very bearish sign.
Although almost all indications are bearish, the price chart below shows that a symmetrical price channel can be drawn, with the price just bouncing now at the lower level. It may be that bearish movement has run its course for the time being. However, if the price breaks below that lower trend line and stays there, it can keep falling and falling into blue sky. Perhaps the big round number at 0.6500 might halt such a fall.
I would take a bearish bias following a bullish retracement and failure to break above 0.6662, or if there are two consecutive hourly closes later below the lower trend line shown in the price chart.There is nothing of high importance due today concerning either the USD or the AUD.