AUD/USD: Pivotal point at 0.6737
Yesterday’s signals produced a profitable, winning long trade from the support level at 0.6706.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6781, 0.6799, or 0.6817.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Go long following bearish price action on the H1 time frame immediately upon the next touch of 0.6737 or 0.6706.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 level at 0.6706 would continue to be pivotal, and if the price could get established above 0.6725 or even better 0.6750, it would be likely to rise higher.
This was a good call as 0.6706 produced the low of the day, giving a good opportunity for a profitable long trade entry. There was also a further rise once the price got established above 0.6725. However, the price has remained below 0.6750 which is the next obvious hurdle for bulls.
I think it makes sense to remain bullish and look for a long trade at 0.6737 today. The price will probably struggle to reach 0.6781 even if it does continue to rise and get established above 0.6750.
Concerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time. Regarding the AUD, the Governor of the RBA will be giving a minor speech at Midnight.