Yesterday’s signals were not triggered, as there was no bearish price action at 0.6164.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Idea
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6268.
- 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 Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6208, 0.6126, or 0.6102
- Place the stop loss 1 pip below the local swing low.
- 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.
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 expected the price to continue to rise, with long trades from bounces at support levels the best potential setup. I was unwilling to take any short trades. These were good calls as the price has continued to advance and is now close to testing the key resistance level at 0.6268.
The Australian Dollar is benefitting from improved risk sentiment even in the face of the coronavirus pandemic, which has seen stock markets recover firmly. It is a good question how long this buying into risky assets will last for, stock markets may well turn at the 50% retracement level since the crash began in February which prices have now almost reached. However as long as it does last, the AUD is likely to continue rising against the USD, so I remain bullish above 0.6208 and would take a long trade from a bullish bounce there if it sets up later.
I am not looking for a short at 0.6268 but I think that level has a good chance to hold as resistance for a while. If the level becomes invalidated quickly today with the price holding up above it, that would be a bullish sign.
Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time. There is nothing of high importance due today concerning the AUD as it is a public holiday in Australia.