My previous signal on 20th February 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 may only be taken before 5pm Tokyo time Tuesday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6534, $0.6559, or $0.6590.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6488, $0.6480, or $0.6456.
- Put 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.
- Take off 50% of the position as profit when the price reaches 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 in my previous forecast on 20th February that the AUD/USD currency pair that the line of least resistance was upwards. I thought that if the price could get established above $0.6550 it would probably rise to $0.6590, so I saw two consecutive higher hourly candlesticks closing above $0.6550 as an acceptable entry signal. This was a good entry signal for a long trade with about 20 pips of profit, so it was a good call.
The Forex market generally has been quite dull over the past few weeks. We saw the price fall below $0.6500 a few days ago and that triggered what looks to be solid buying. However, the bullish momentum tailed off as soon as the price reached the next resistance level at $0.6534.
There is nothing special going on here today, but if the price continues to fall to the nearest support level at $0.6488 and makes a bullish bounce, it could be a good long trade entry. Monitoring such a long trade carefully and being ready to take profits conservatively will probably be wise in the current low-volatility environment
There is nothing of high importance due today regarding either the AUD or the USD.
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