AUDUSD: Bulls seeking triangle breakout
Yesterday’s signals were not triggered, as there was no bearish price action when 0.6822 was first reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
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
⦁ Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6798, 0.6769, 0.6754, or 0.6744.
⦁ 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 yesterday that the resistance at 0.6822 continued to look extremely pivotal, even more so as there was an obvious descending trend line reinforcing that price area. I was ready to take a bullish bias on this pair above 0.6822 but was wary of 0.6840/50 as minor resistance. This was not a great call as the price did get above 0.6822 for a while but came right back down into its previous range, although the overall movement was not very large.
We still have a series of higher lows supported by a trend line, but the level at 0.6822 has become re-established as effective resistance and is confluent with a longer-term bearish trend line, as can be seen in the price chart below.
I still see the obvious potential here as a bullish movement following a breakout above the 0.6830 area. If we get this with some momentum as New York or (even better) Tokyo get underway, I would take a bullish bias.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.