AUDUSD: Aussie still bullish
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken before 5pm Tokyo time Tuesday.
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 last Thursday that the recent break above 0.6800 was technically significant, i.e. significantly bullish. I was looking to take a bullish bias if we get any bullish bounces at a key support level following a bearish pull-back. This was a good call insofar as the price has continued to rise, and is still rising, although unfortunately we have not yet had a good pull back to a key support level over recent days.
The signs are still bullish, and at the time of writing it even looks as though the resistance level at 0.6868 is breaking, which would be another bullish sign if it completes. However, bulls should be aware that the price now is approaching a key pivotal zone which begins above 0.6868, so it may be time for a pause in the bullish movement.
I would still take a bullish bias if we get a pull back and bullish bounce at 0.6830.
There is nothing of high importance due today concerning either the AUD or the USD.