AUDUSD: Strongly bullish
Yesterday’s signals were not triggered, as there was insufficiently bearish price action when 0.7008 was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York to 5pm New York today.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7035 or 0.7053.
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 0.6986, 0.6975, 0.6965, 0.6955, or 0.6940.
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 the AUD and its highly positively correlated sister currency the NZD were very strong now. However, I thought that the resistance area which begins just above 0.7000 would pause or a bearish retracement, so I was waiting for a retracement to support before taking a bullish bias.
We never got the retracement, and the price has continued to rise into blue sky but may be stalling now just above the 0.7000 level. I was correct in any case to be looking to the bullish side.
Again, I will take a bullish bias if we get a solid bullish bounce at any of the support levels identified above, as a pullback still seems likely after such a prolonged bullish directional movement. The Australian Dollar is still strong, and this has been helped by relatively positive economic data from China which was released earlier today.
There is nothing of high importance due today regarding the AUD as it is a public holiday in Australia today. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.