AUD/USD: Key resistance level at 0.6579
Yesterday’s signals were not triggered, as there was no bearish price action when any of the resistance levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 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 0.6579.
Place 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 0.6515.
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 although the technical picture had become more bearish due to the symmetrical bearish price channel, I was still prepared to take trades from reversals at any trend line or horizontal level.
This was at least enough to keep out of trouble, but no such trades set up. Instead, we saw the price begin a strong bullish move that produced a smooth and firm bullish breakout above the price channel, and the printing of new support at 0.6515.
We may see the resistance at 0.6579 hold if it is reached, at least for a while, but overall things here look bullish, in line with the medium to long-term bullish trend.
I will take a bullish bias today if we get a retracement to 0.6515 and a bullish bounce from that level.
There is nothing of high importance due today concerning the AUD. Regarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm London time.