Support level at $0.6669 looks likely to be today’s pivotal point.
My last signal on 15th March did not trigger any trades, as unfortunately the bullish price action that took place a few pips below the support level which I had identified at $0.6599.
Risk 0.75%
Trades may only be entered before 5pm Tokyo time Wednesday.
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6725, $0.6748, or $0.6786.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6669, $0.6590, $0.6553.
- Place 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.
- Remove 50% of the position as profit when the price reaches 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.
I wrote in my previous forecast that the AUD/USD currency pair was quite likely to continue to consolidate within the fairly wide range in which there are no key support or resistance levels between $0.6719 and $0.6599.
This was a good call, with the price just exceeding that lower boundary by a few pips before rising strongly again. However, I was wrong about an expected lack of opportunity, as trading long at the low there would have been an excellent trade.
The technical picture remains quite consolidative, as the price chart below shows, with little significant change from my previous analysis. The price has repeatedly rejected the upper boundary of the range, the strong resistance level at $0.6725, and has headed down from there with some short-term bearish momentum.
However, there is one thing which is new – the support level within this wide range, which has already been pivotal, at $0.6669. This looks very likely to be today’s pivotal point.
If this level holds it could provide a long trade entry, but I think that a breakdown below it would have greater potential, as a short trade.
I will enter a short trade, targeting the next support level at $0.6590 if we get two consecutive lower hourly closes today below $06669.
There is nothing of high importance due today regarding either the AUD or the USD.
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