The pair hits a new 7-month low.

Last Thursday’s AUD / USD signals were not triggered as there was no bullish price action when the support level at 0.7430 was reached on that day.

AUD / USD signals of the day

Risk 0.75%

Transactions must be entered by 5:00 p.m. Tokyo time on Wednesday.

  • Short entry following a bearish reversal in the H1 period immediately after the next contact of 0.7351, 0.7367, 0.7403 or 0.7424.

  • Put the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips of profit.

  • Take out 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position surf.

Long business ideas

  • Long entry following a bullish price reversal over the H1 period immediately after the next contact of 0.7299, 0.7264 or 0.7245.

  • Put the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips of profit.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle, or even just a engulfing candle with a higher close. You can mine these levels or areas by observing the price action that occurs at given levels.

Publicity

AUD / USD Analysis

I wrote last Thursday that the technical picture was dominated by a shrinking triangular formation that was squeezing the price. I thought a bearish breakout seemed more likely than a bullish breakout, due to the wider shape and position of the triangle.

It was a good call, as we got the bearish breakout of the narrowing triangle as can be seen in the price chart below, although the breakout below 0.7400 that I was looking for did not happen. that day, so unfortunately a short input signal.

The picture is very bearish as the price has continued to decline since then and is now reaching new low prices over 7 months. Markets are seeing a sharp sell off in stocks and other risky assets and there are few currencies “riskier” than the Australian dollar, which analysts say may require a further increase in the decrease in the RBA. Global nervousness over the potential economic disruption that could be caused by a resurgent and partially vaccine-proof coronavirus variant is causing strong sales and a flow to the USD, and while this environment persists, we will most likely see even lower prices here. over the next few days.

It is always dangerous to try to “catch a falling knife” when the prize travels in the blue sky like it is here. For this reason, I will only look for a short position today in this currency pair, from a bearish reversal to an identified resistance level.

AUD / USD

Regarding the AUD, retail sales data will be released at 2:30 a.m. London time. There is nothing very significant about the USD forecast today.


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Al Worden

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