AUD/USD – The Pair May Recover With a Possible Uptrend

Risk – 0.75% per trade

Short Position

• Open these positions after a bearish price action reversal on hourly time frame, once price touches $0.6786, $0.6847, or $0.6895.
• Stop loss: place at 1 pip below the local swing low and move to break even once the trade gets 20 pips profit.
• Take profit: Remove 50% of trade as profit once the stop loss is adjusted.
• Let the remainder of the trade position run after taking profit.

Long Position

• Open these positions after a bullish price action reversal on hourly time frame, once price touches $0.6679.
• Stop loss: place at 1 pip above the local swing high and move to break even once the trade gets 20 pips profit.
• Take profit: Remove 50% of trade as profit once the stop loss is adjusted.
• Let the remainder of the trade position run after taking profit.

Although the Australian inflation statistics came in lower than what economists had predicted, this led to a rise in the pair price, which was the opposite of what we had anticipated. We anticipated a potential decrease for the Australian Dollar pair, but it didn’t really happen. The present bullish trend has the price heading for the $0.6786 resistance level. If a bearish reversal occurs, we may have the chance to short the pair. If the price reaches $0.6780 and $0.6786, we can anticipate it.

On the other hand, if the price of the pair adjusts and makes two consecutive higher hourly closes above $0.6786, we can expect that the price will continue to rise and it would be a good time to go long on the pair. This would be the ideal line of action if you observe a rally or the price stabilising during the New York session. For the AUD fundamentals, not much has changed. Yet, the release of the manufacturing PMI will cause some movement in the Dollar.

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