AUDUSD: Evenly balanced but 0.6750 pivotal
Last Thursday’s signals produced a losing short trade from the bearish rejection of the resistance level at 0.6783.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuessday and 5pm Tokyo time Wednesday.
Short Trade Idea
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6809.
- 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 Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6752 or 0.6733.
- 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 was quite bullish last Thursday, seeing a bullish base below the psychological level at 0.6750. This was a good call as the price continued to rise all the way to the key resistance level at 0.6809. We now see the support at 0.6751 (confluent with the psychological level at 0.6750) as important and I think this is likely to be today’s pivotal point. I would take a bullish bias today if we get a firm bullish bounce when 0.6751 is next touched.
There is no real trend, so reversals at key levels are likely to be all we have today.
Conversely, if the price can get established later below 0.6733, that would be a bearish sign.
There is nothing of high importance due today concerning either the AUD or the USD.