AUDUSD: Weakly bullish above 0.6862
Last Thursday’s signals were not triggered as unfortunately the bearish price action took place just a little way above the resistance level identified at 0.6927.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6940.
Place the stop loss 1 pip above the local swing high.
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.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6862 or 0.6817.
Place the stop loss 1 pip below the local swing low.
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 although the picture had become much more bullish, there were long-term high prices not far above now between 0.6900 and the major psychological level and round number at 0.7000 which may provide stronger resistance to hold the price.
This was a good, accurate call as the price rose over the day to get just shy of the resistance level at 0.6940 before falling sharply, and then turning bullish again just above the support level identified at 0.6862. This pair is currently respecting strong support and resistance levels.
The price is now rising again but may be running into minor resistance at about 0.6885. If it can get past this level, as the USD is generally weak and we have a more risk-on environment, which should benefit the AUD, we are likely to see the price rise to again test the 0.6940 area. So I would take a weakly bullish bias if we get a couple of consecutive hourly closes above 0.6890 after 8am New York time today.
Concerning the USD, there will be a release of Flash Manufacturing PMI data at 2:45pm London time. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 12:30am.