AUDUSD: Confused situation below 0.6750
Yesterday’s signals produced a profitable short trade from the bearish outside candlestick on the hourly chart which rejected the resistance level at 0.6750, but it only gave 22 pips, barely more than the minimum 20 required to be profitable.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6769, 0.6788, or 0.6800.
Put 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.
Long Trade Idea
Go long immediately upon the next touch of 0.6677.
Put 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.
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 I expected lower prices over the course of the day and if the price could get below 0.6725, it was quite likely to make a stronger and sharper fall down towards the 0.6677 level. This was not a bad call as the price did move lower, but barely got below 0.6725 before rebounding and advancing back up to the 0.6750 area.
The picture now is solidly bearish at and above 0.6750, but this area below 0.6750 is very confused and unpredictable. This higher resistance levels above that look very strong, so I would be prepared to take a bearish bias at strong bearish reversals at any of those three resistance levels later. 
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time. Concerning the AUD, we will get Building Approvals data at 2:30am.