AUDUSD: Weakly bullish above 0.6861
Yesterday’s signals produced a losing short trade from the bearish pin candlestick which rejected the resistance level identified at 0.6861.
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 0.6902 and 0.6940.
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 0.6861 or 0.6817.
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 a short from 0.6861 would probably be a bit of gamble but also attractive as this level seems to be getting very well-established. I took no directional bias.
I was roughly right but the gamble on 0.6861 holding as resistance did not pay off. The price has gotten established above it and this level is now probably going to act as support. At the same time, there is new resistance confluent with the round number at 0.6900.
There is no trend and bulls and bears are quite evenly balanced.
The best I can say about this currency pair is that again, both the nearby support and resistance levels look equally likely to produce at least a few pips of profit on reversals, but in the absence of any major market news, the best approach is probably going to scalping bounces off the levels on short time frames and being very careful not to stay too long in any trade.
There is nothing of high importance due today regarding either the AUD or the USD.