AUDUSD: Weakly bullish above 0.6822
Last Thursday’s signals produced an excellent long trade from the bullish pin candlestick which rejected the support level identified at 0.6769 to the pip. It would be wise to make a further exit after a couple of consecutive hourly closes below the support level at 0.6809.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6822, 0.6862, or 0.6885.
⦁ 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 0.6769, 0.6754, or 0.6744.
⦁ 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 last Thursday that there were reasons to be bearish, but it was important to be cautious of longer-term buyers coming in between 0.6800 and 0.6769. Therefore, I wanted to trade short on shorter time frames below 0.6809, but I was also ready to get out or to even take a long trade if there was a convincing bullish bounce later at 0.6769.
This was a perfect call which enabled profit both on the way down and then on the way back up as the price bounced strongly at 0.6769 right to the pip.
Bulls are now trying to get the price above 0.6822. If the price does get established above this price, it will be a bullish sign of another thrust up beginning. There price has room to rise all the way to 0.6862 from there, so I will take a bullish bias later if we get a couple of consecutive hourly closes above 0.6822 later.
Alternatively, if the price gets established below the support at 0.6809, or let’s say instead the round number at 0.6800, without breaking above 0.6822, that would be a bearish sign.
There is nothing of high importance due today regarding the USD. Concerning the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 12:30am London time