Dear Daily Price Action Setup Traders,
Yesterday’s signal reacted almost as expected to the support level. I did not trade this setup, since the intraday environment did not show confirmation. I did not trade it also because of what I have said yesterday- we were really close to the support level of 1.5000, which is both a psychological and a multi-year low barrier. For the ones of you, who read my daily price action setup from yesterday, this should have been clear. For the ones of you who haven’t, today I have a new trading idea, which definitely looks better than yesterday’s one.
Today’s daily price action setup is coming from the Aussie– or namely the AUD/USD. The price initially went down to test a new low at 0.7620. Then, it couldn’t hold at those levels and rose to 0.7840, before settling down below that level. The reason for the sharp decline was the unexpected rate decision of the Australian bank, but as we saw later this move was erased by the price returning to the levels from where it fell. Today’s daily price action setup really resembled a typical v-shaped reversal on the intraday charts. On the daily, the outcome was a nice pin bar. Although, I don’t like going against the trend, AUD/USD seems to be extremely oversold, that is why I believe time has come for a small correction at least.
Today’s entry parameters for this daily price action setup are:
I will try entering at a long position at 0.7750. My stop loss would be placed just under the low of the pin bar at 0.7620. My first target would be the level of 0.7920 and then potentially 0.8050.