AUD/USD: New 11-year low prices
Yesterday’s signals were not triggered, as the price never reached the resistance level identified at 0.6268.
Today’s AUD/USD Signals
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6268 or 0.6386.
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.
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 that the price may be finding at least a short-term bottom at the round number of 0.6100, so I would wait for two consecutive hourly closes below that level before taking a fresh bearish bias. I thought that it may also be that support is found at the very big round number a handle below that at 0.6000.
This was a great call, as the price finally made that second consecutive hourly close below 0.6100 a few hours ago, which was an accurate signal to go short as the price has fallen by more than 70 pips from that price just over the past few hours.
At the time of writing, the price is close to the very big round number at 0.6000 which may still provide some support, but the price action is wildly bearish and this is supported by the growing feeling that a global recession is now going to be very difficult to avoid due to the financial impact of the coronavirus pandemic. Global recessions tend to hit the Australian Dollar hard and this time is no different.
The price is close to breaking 11-year lows and falling to new multi-decade lows. “Blue sky” doesn’t even begin to describe this.
Beware of 0.6000 as potential support but trading this pair short looks like a great idea right now, while monitoring carefully on short time frames and respecting the relatively high volatility level.There is nothing of high importance scheduled today regarding the AUD. Concerning the USD, there will be a release of Retail Sales data at 12:30pm London time.