AUDUSD: Bears testing supportive area
Last Thursday’s signals were not triggered as there was no bearish price action at 0.7047.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7025 or 0.6993.
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 Ideas
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7053 or 0.7088.
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 last Thursday that following a bullish bounce, it seemed we had re-established the higher support level at 0.7025. I thought that 0.7047 was likely to be the day’s pivotal point, so I was prepared to take a bullish bias above that level. The price did continue to rise for about another 35 pips before falling back.
We have a bearish pull back, but the bullish trend remains intact. This means long trades from bounces at support levels such as 0.7025 or 0.6993 are likely to be the best opportunities. However, the price needs to make a new 50-day high price above the resistance at 0.7088 for the bullish trend to remain likely to continue – I would take a bullish bias if that happens. It is worth noting though, that the NZD is more bullish than the AUD.
Alternatively, a break below 0.6993 would be a bearish sign.
There is nothing of high importance due today regarding either the USD or the AUD.