My previous signal on 16th January was not triggered as none of the key support or resistance levels were reached that day.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered before 5pm Tokyo time Friday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6568, $0.6593, or $0.6611.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6528 or $0.6456.
- Place stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the price reaches 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 in my previous forecast two day ago that the AUD/USD currency pair was showing a more bearish technical picture after breaking down to a new 1-month high price, due to a strong US Dollar and the Australian Dollar as the weakest major currency. I thought that the area near $0.6600 was likely to be pivotal, so I was looking for a short trade below that.
This was a good call as once the price got established below that level, it did fall significantly further over the course of the day, making a profitable short trade possible. Two days later, the technical picture has changed a bit – after falling to the support level yesterday at $0.6528, the bearish momentum ended, and the price seems to have made a bullish short-term double bottom at this level.
However, we seem to have resistance at $0.6568 which bulls have been able to overcome, and this could be a pivotal point now. If we get two consecutive higher hourly closes above $0.6568, a long trade could be a good trade entry.
Regarding the USD, there will be a release of US Unemployment Claims data at 1:30pm London time. There is nothing of high importance scheduled today concerning the AUD.
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