AUD/USD: Pivotal point at 0.6094
Yesterday’s signals were not triggered, as the bearish price action took place above 0.5962.
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 0.6094 or 0.6268.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.5958 or 0.5888.
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 key resistance level of 0.5962 looked pivotal.
I was ready to take a bearish bias if we had gotten a strong rejection of 0.5962 after New York opened later. We did not, and this was a fairly good call on the level as the price continued to rise after it broke above it.
The recovery in risky assets over recent hours has boosted the AUD which recently fell to historic lows against the USD. However, that recovery is quite likely to run out of steam soon, so I prefer to look for short trade entry opportunities today. A bearish reversal at 0.6094 looks like it will be an attractive short trade entry signal.
There is nothing of high importance scheduled for today concerning either the AUD or the USD.