AUD/USD Forex Signal: Bearish Triangle Breakdown – DailyForex.com
AUD/USD: Bears are winning
Yesterday’s signals were not triggered as the price has not yet reached any of the identified support or resistance levels.
Today’s AUD/USD Signals
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trade Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6774.
Place the stop loss 1 pip below the lowest recent price.
Adjust 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 ride.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6892 or 0.6918.
Put the stop loss 1 pip above the highest recent price.
Move 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 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.
I wrote yesterday that the technical picture was unchanged, with the price remaining within the narrowing triangle without a breakout. The pivotal point within the triangle seemed to be at 0.6892 or maybe the round number close by at 0.6900.
I wanted to avoid trading this currency pair above 0.6774 and below 0.7000, but I was right about the pivotal point being at about 0.6900 or 0.6892 as the price has moved down and finally broken below the triangle as shown in the chart below, without even reaching let alone breaking above 0.6892.
Although we have a bearish breakdown, the breakdown looks weak and a little unconvincing. Therefore, I will not take a bearish bias until we get two consecutive hourly closes below the support level at 0.6774, and I will take a long trade here later if we get a firm bullish bounce at that level.There is nothing of high importance scheduled today regarding the AUD. Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Representatives at 5:30pm London time.
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