AUDUSD: Bullish base below 0.6750?
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6783 or 0.6809.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6755 or 0.6733.
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
The AUD has been very weak over recent weeks, making new long-term low prices. However, it has now recovered some strength. This pair seems to have built a bullish base below the key psychological level at 0.6750 and the line of least resistance seems to be upwards. There is also short-term bullish momentum.
I see the best opportunity which may set up here today as likely to be a long trade from a retracement to 0.6755 if there is a strong bullish bounce there.
If the price can get established above 0.6783, it would be a bullish sign.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.