AUDUSD analysis: less bullish but supported at 0.6963
Yesterday’s signals produced a long trade from the bullish inside candlestick which rejected the support level at 0.6963. This trade would be in profit but not by much and I am not very optimistic that the price will rise further from here.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6963 or 0.6940.
Place the stop loss 1 pip below the local swing low.
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.
Short Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047.
Place 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.
AUD/USD Analysis
I wrote yesterday that the price looked bullish with good short-term momentum pushing the price upwards beyond the big round number at 0.7000. If the price could close above 0.7000 for a couple of hours, I was ready to take a bullish bias until 0.7047. This was a good call as the price was unable to get established above 0.7000 and has fallen back, where it now looks less bullish despite the lower support level at 0.6963 holding to the pip exactly.
The price may have made a major bottom, but it seems the bullish movement may be running out of steam. I think a sustained break below the support at 0.6963 would be a significant sign that more consolidative, choppy price action is getting established as a pattern. However, if alternatively, the price can get above 0.7000 properly, that would be a bullish sign.
There is nothing important due today concerning either the AUD or the USD.