AUDUSD: Weakly bullish but resistance at 0.6940
Last Monday’s signals were not triggered, as none of the key levels have been reached yet.
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 0.6940.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6882.
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 Monday that I expected the price to keep rising over the short-term, but to fail to clear 0.6940 until Thursday or Friday later this week at the earliest. This was a good call as it reflects exactly what has happened since then.
The picture is unchanged here technically. The New Zealand and Australian Dollars are very strong currencies, but this area above starting at 0.6940 will probably be hard to break, and we already see the bullish momentum slowing down.
The opportunity which is likely to come soon would be a short trade from a bearish failure to get established below the resistance level at 0.6940. However, it is quite likely that such a bearish move would be limited to the short-term as we have a long-term bullish trend, so bears would be wise to be cautious and carefully monitor the progress of a short trade from this area.
If the price can instead get established above 0.6940, that would be a bullish sign, but there remains a lot of resistance all the way up to and including the huge psychological level and round number at 0.7000.
There is nothing of high importance due today regarding either the AUD or the USD.