AUD/USD: Pivotal point at 0.6123
Last Thursday’s signals were not triggered as there was no bearish price action when the price reached the resistance level, I had identified at 0.6094.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6268 or 0.6386.
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 0.6123 or 0.6023.
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 last Thursday that despite the short-term bullishness, I still saw the resistance at 0.6094 as likely to hold, so a short trade from a bearish reversal there was likely to be the only good opportunity we might get today.
I was wrong not to be bullish, and it notable that along with the Euro and Pound, the Aussie is continuing to hold up against the USD and print new higher support levels.
There is no reason not to be bullish, as improved risk sentiment seems to be holding up everywhere over the short term, we have also seen the price exceed highs of several days ago which is technically significant. I would take a bullish bias here if the price can get established above 0.6200 and I’d be even more bullish if it can break the resistance at 0.6268.
There is nothing of high importance scheduled for today concerning either the AUD or the USD.