AUD/USD: New 2-month high price
Yesterday’s signals were not triggered, as there was no bearish price action when 0.6556 was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken 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 0.6683.
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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of the zone between 0.6556.
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 the bulls had a small edge, and that the area at about 0.6515 to 0.6500 was almost certainly going to be pivotal. These were pretty good calls on the right track, as the price has risen very strongly from its earlier lows close to 0.6500.
Riskier assets are rising everywhere in the risk-on market environment, and there is no bigger major “risk” currency than the Australian Dollar. The price is breaking to new 2-month highs and has room to rise all the way to 0.6683 before hitting any key resistance level.
I have not marked this as a key support level, but a retracement to 0.6600 and a bullish bounce there looks likely to be a good long trade opportunity if it sets up after New York opens.
The USD is the second-weakest currency, so this pair looks set to keep rising over the near term.There is nothing of high importance due today concerning either the AUD or the USD.