AUD/USD: Weak bullish breakout from channel not impressive
Yesterday’s signals were not triggered, as neither of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8 am New York time Wednesday to 5 pm Tokyo time Thursday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6892 or 0.6774.
- Put the stop loss 1 pip below the lowest recent price.
- Move 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 run.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7109.
- Put the stop loss 1 pip above the highest recent price.
- Move 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 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 we definitely had a more bullish technical picture here now as we had a breakout from the bearish channel with almost nothing before 0.7109 to stop a further rise, but also potential resistance at about 0.6950 and 0.6975, not to mention the big round number at 0.7000, so I wanted to stand aside and wait below 0.7000.
This was a good call as the price has done nothing over the past 24 hours.
The bullishness I mentioned yesterday is now called into question as the chart below shows that the price is contained within a new narrowing, consolidating triangle formation.
I will continue to avoid trading this pair as long as the price remains between 0.6774 and 0.7000 unless we get some dramatic price action.
I see the best trade which may set up here in the near future as a long trade from a bullish bounce at 0.6774.
There is nothing of high importance scheduled today regarding either the AUD or the USD.