New higher support level at 0.6446
Last Thursday’s signals were not triggered, as unfortunately the price never retraced quite as far as the support level identified at 0.6327.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken 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 0.6547 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 Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6446 or 0.6406.
- Put 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 last Thursday that as there was no clear resistance level until beyond 0.6400 so the price had room to rise. I wanted to take a bullish bias if we had gotten two consecutive hourly closes above the bearish trend line at about 0.6360. This was a good longer-term call, but over the short-term the price went sideways after triggered the long bias as measured one day after the bullish entry was triggered.
The technical picture is now even more bullish, as the price has continued to advance strongly and invalidate resistance, leaving more room to rise all the way to 0.6547 although the big round number at 0.6500 may halt the advance for a while. As long as the new support level at 0.6446 remains unbroken, the price should continue to advance. In fact, even a retracement to 0.6406 would be likely to see new highs if we get a bullish bounce at the first chance, so I would be prepared to take long trades following bounces at either of those support levels.
There is nothing of high importance due today concerning either the AUD or the USD.