AUD/USD: Likely that the price has put in a long-term bottom
Yesterday’s signals were not triggered, as none of the key levels given were reached yet.
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 0.6547 or 0.6579.
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
Go long 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 the price looked very evenly balanced between bulls and bears, so near-term price direction looked very uncertain. I took no directional bias and was ready to trade rejections from key levels here on short time frames cautiously.
This was a good call, as the price remained contained within the nearest support and resistance levels given. I take the same approach today and again take no directional bias, although a short trade from a retracement to 0.6547 looks like the best trade set-up which is likely to happen.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time.