New higher support level at 0.6436
Yesterday’s signals were not triggered, as there was insufficiently bullish price action when the support level at 0.6446 was first reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6547 or 0.6579.
- 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 Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6436 or 0.6406.
- 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 outlook had become even more bullish, and I was seeking a long trade from a bounce at either of the two nearby support levels which I had identified. I was right about the price continuing to advance as it is now higher than it was 24 hours ago, but wrong about 0.6446 as the support yesterday truly kicked in about 10 pips lower than that, so I had readjusted this level.
There is no reason not to remain bullish as the technical picture simply stays bullish, and the USD is losing ground almost everywhere. When the USD is either the strongest or weakest currency, it is a good time to be trading Forex in line with that flow, and the AUD is one of the strongest global currencies right now as risk appetite holds up despite the ongoing economic impact of the coronavirus pandemic.
I take a bullish bias on this currency pair today, but I note the price is already very close to the round number at 0.6500 which might halt the advance, at least for a while.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the AUD, there will be a release of CPI (inflation) data at 2:30am.