Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7325, 0.7299, or 0.7264.
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.
Take off 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 0.7340 or 0.7363.
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.
Take off 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 it should be noted the price has been moving over the past two weeks within a range from 0.7340 to 0.7221. I was looking to trade this range.
This has been a good if not very useful call, at least so far, as the price has moved up slowly but remains contained by this price range.
The AUD/USD currency pair has become interesting as the price is now close to the upper boundary of the range, in an area where we have already seen a bearish double top, near 0.7340. Another bearish rejection and reversal from this level could be the start of a move down to the lower end of this price range and therefore might provide a good short trade opportunity.
On the other hand, a bullish break above 0.7340 would be a long-term bullish breakout and would be a bullish sign. However, I am not so confident that the price would rise quickly if this were to happen, as there are lots of evenly spaced resistance levels above 0.7340. In fact, we see lots of evenly spaced support levels too below the current price, suggesting that action in this pair in either direction is likely to remain slow and choppy, so it may be better to focus on other currency pairs for the time being.
There is nothing of high importance due today concerning either the AUD or the USD.