AUD/USD: Likely that the price has put in a long-term bottom
Yesterday’s signals produced a profitable short trade from the resistance level identified at 0.6683, but later gave a losing long trade from the support level identified at 0.6583.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6683 or 0.6706.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6450.
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 I would be very cautious trading this pair right now as it looked as if it would neither fall nor rise by much for some time, or at least over the coming day. This wasn’t a great call as the nearby resistance levels held as the USD began to come back and push the price down.
However, I have to give the same outlook today – the price looks very evenly balanced between bulls and bears, so near-term price direction looks very uncertain. On the other hand, this means that reversals from any of the key levels given above are likely to give at least modest profits.
I take no directional bounces and would trade rejections from key levels here on short time frames cautiously.
There is nothing of high importance due today regarding either the AUD or the USD.