AUDUSD: Bulls testing 0.6925 area
Yesterday’s signals produced a profitable long trade from the support level identified at 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 0.6965.
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 0.6885 or 0.6870.
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 become more bullish the longer the support at 0.6885 held and I would be more bearish if the price could get established below the current lower support level at 0.6870. If the price rose from 0.6885 and could begin to trade above the round number at 0.6900, that would indicate a more bullish situation was emerging.
This was a good call as we have seen the price rise from 0.6885 and continue to go up beyond 0.6900. The price is now testing the swing high in the area of 0.6925 which is the current hurdle for bulls.
If we see two consecutive hourly closes later above 0.6930 then we should see the price continue upwards to test the next resistance level at 0.6965 and I would take a bullish bias on this currency pair if that scenario plays out.
There is nothing of high importance due today regarding the AUD. Concerning the USD, Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time.