AUDUSD: More bullish above 0.6862
Yesterday’s signals were not triggered as there was no bearish price action at 0.6862 or 0.6885.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6927.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6862.
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 thought the potential for a long trade (which I had indicated the day before that) had already passed. I thought that the best approach would probably be to fade any sudden spike to extreme support or resistance levels such as 0.6885 or 0.6781.
I was wrong – the price has continued to rise even higher, with the FOMC release generating weakness in the USD which was manifested strongly here against the AUD.
Technically the picture has become much more bullish, with the price getting established above the former resistance level at 0.6862 which now appears to have become support and invalidating the former resistance level at 0.6885.
There are long-term high prices not far above now between 0.6900 and the major psychological level and round number at 0.7000 which may provide stronger resistance to hold the price if reached.
In the meantime, I would take a bullish bias if we get a retracement to 0.6862 later and a firm bullish bounce there. It looks like a great location at which to enter a long trade.
There is nothing of high importance due today concerning either the AUD or the USD.