AUD/USD: Unpredictable technical situation
Yesterday’s signals were not triggered as there was insufficiently bullish price action at 0.6420, although it acted as the low of today so far to the exact pip.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6420.
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 technical picture had become confused and quite consolidative. I wanted to stand aside and wait either to see the price end the New York session clearly above 0.6520, which would be a bullish sign, or clearly below 0.6420, which would be a bearish sign.
This was a good call as the price not only respected this range yesterday, it ended the day within the range, although close to 0.6420, which suggests that the support level at 0.6420 will hold at least for a while.
The technical picture remains consolidative and dominated by the support level at 0.6420, which should be worth at least a cautious long trade if we get another bullish bounce there after New York opens. However this long trade should be carefully monitored on shorter time frames – don’t expect huge profits, be conservative.
There is nothing of high importance due today concerning either the AUD or the USD.