AUDUSD analysis: still bullish above 0.6912
Yesterday’s signals were not triggered as none of the key levels were reached during the specified period.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time Thursday.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6912, 0.6902, or 0.6882.
Put 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.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6937 or 0.6963.
Put 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.
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 yesterday that there had been little change to the technical picture. Overall it was still too bullish to be really confident about taking any short trades, so I would still look for longs. I was ready to be very bullish if the price could trade above 0.6937 for a couple of hours consecutively later.
This was a reasonably good call, as although the price actually fell, the nearest support level at 0.6912 has held up so far. As long as this level holds, the technical picture remains more bullish than bearish although maybe not be a lot.
I am sure that 0.6912 is extremely likely to be today’s pivotal point. The next support level below that also looks very attractive as an area to find a long trade entry. Alternatively, if the price goes on to rise but fails strongly to break the resistance at 0.6936 again, that would be a bearish sign, producing a bearish double top.
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Building Approvals and Private Capital Expenditure data at 2:30am.