AUDUSD: Support at 0.6800 holds firmly
Yesterday’s signals produced a profitable long trade from the support level at 0.6803. The price is still rising firmly so it would probably be best to let this run.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday to 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6862 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 0.6814, 0.6803, or 0.6781.
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 I saw a potential for a long trade at 0.6814 or 0.6803 although it did think it was dubious and so should be monitored carefully on short time frames.
I was half right, as the level at 0.6803 produced a nicely profitable long trade which is still rising.
Arguably, this pair is in a medium-term bullish trend. There is quite strong short-term bullish momentum, so it seems the price has a good chance to rise higher over the coming hours. Nevertheless, the really good opportunity for a long trade entry probably passed a few hours ago. The next major movement will probably be driven by the content of the FOMC release due later and so I would not want to trade this pair until the release comes. The best approach would probably be to fade any sudden spike to extreme support or resistance levels such as 0.6885 or 0.6781.
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 and the FOMC Economic Projections, FOMC Statement, and Federal Funds Rate at 7pm plus the usual press conference half an hour later.