AUD/USD: Possible higher support at 0.7250
Last Thursday’s signals were not triggered as there was no bullish price action when the support level at 0.7292 was reached that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8 am to 5 pm Tokyo time today.
Long Trade Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7217.
- 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
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7300, 0.7317, or 0.7340.
- 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 last Thursday that I thought that we would learn much from how the price reacted at 0.7292 which was very certain to be today’s pivotal point.
I thought that a bearish break below 0.7292 would make it likely that the price would continue downwards to 0.7217 at least.
I was correct about that, so I got the day’s pivotal point right.
Later on, the price made a medium-term low just a pip or two above the lower support level I had identified at 0.7217.
The outlook is broadly less bullish, and over the near term, the price is likely to consolidate below 0.7300, so a short trade from a reversal there later could be an interesting trade.
Traders should be aware that there are major data due to the Reserve Bank of Australia’s major policy release, which could push the price around.
There is nothing of high importance due today regarding the USD, as it is a public holiday in the U.S.A. Concerning the AUD, the RBA will release its Rate Statement and Cash Rate at 5:30 am London time.