AUD/USD: Resistance possible around 0.6200
Yesterday’s signals were not triggered as none of the key levels given were reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Tuesday and 5pm Tokyo time Wednesday.
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 0.6130 or 0.6030 or 0.6077.
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 yesterday that the technical picture here had become more confused, so the best I could say was that the price would look more bullish if it could get established above the upper trend line at about 0.6100 or more bearish below the support level at 0.5979. This was a good, useful, and profitable call as once the price got established above 0.6100, breaking out of the bearish price channel which is still shown within the price chart below, it continued to rise by about another 70 pips to the present time.
The situation is clearly much more bullish, with the USD selling off everywhere and risk assets recovering quite strongly as stocks advance – this has boosted the AUD, as has the RBA’s earlier policy input a few hours ago.
There are reasons to expect the price to continue to rise, but the inflection area nearby at 0.6200 could produce some resistance.
I would be happy today to take a long trade from a retracement and bullish bounce at any of the support levels identified above below the current price.
There is nothing of high importance scheduled for today concerning either the USD or the AUD.