AUDUSD: Bulls likely to keep upper hand
Yesterday’s signals produced a possible profitable long trade entry following the very bullish candlestick which rejected the support level at 0.6855.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6927, 0.6940, or 0.6955.
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 0.6855, 0.6845, 0.6834 or 0.6809.
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 took a weakly bullish bias on this pair and that it looked as if there was more upside than downside potential, so a weakening USD could make this pair interesting later.
This was a great call as the price rose strongly following the FOMC release which weakened the USD, in fact I should have been more bullish. The price has reached multi-week new high prices, which tends to be a bullish sign.
We are seeing a bearish retracement now, but the bulls still have the upper hand. However, there are unlikely to be any clear-cut opportunities today.
There is nothing of high importance scheduled today concerning either the USD or the AUD.