AUDUSD: Significant bullish break above 0.6850
Yesterday’s signals were not triggered, as none of the key levels have been hit yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday until and 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6917 or 0.6940.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6830 or 0.6800.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 a bearish pullback was due. I saw the next key thing to watch out for as being whether the support at 0.6830 or at worst 0.6800 would hold up. If so, the bullish move would be likely to continue. This was a correct call but not actionable as the price never revisited either of the nearby key support levels which I identified at 0.6830 and 0.6800.
The technical picture has become significantly more bullish still, as the price gets established above the level at 0.6850 which was a key long-term pivotal point which had looked likely to act as resistance. The price also has room to rise all the way to 0.6916 before reaching any key resistance level, so I would take a bullish bias if the price breaks the recent highs after the New York session gets underway.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.