AUD/USD: Australian Dollar is the strongest major currency
Yesterday’s signals were not triggered, as the price never reached the support level at 0.6683.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trade Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6774.
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 this pair looked set to continue its rise as long as the price held up above the new support level at 0.6683. This was a great call as the price never even retraced to this level and advanced very strongly yesterday with more than 150% of a typical daily range. This suggested that the price was likely to rise further today, and it has already done so, to yet another new multi-month high price.
The Australian Dollar has the greatest long-term strength of any major currency and is getting a strong boost from continuously improving risk sentiment and rising stock markets globally.
The technical picture is very bullish, as we have a strong advance and another new higher support level being printed, at 0.6774. The price is now trading well above 0.6800 and there are no obvious resistance levels above it, although of course round numbers such as 0.6850 or 0.6900 may act as resistance.
I would definitely not take any short trade here today but would look instead to buy significant dips in intraday trading after New York opens. It is not likely that the price will retrace to the nearest support level at 0.6774 but if it did and made a bullish bounce, that would probably be a great opportunity to enter a long trade.
There is nothing of high importance due today concerning either the AUD or the USD