AUDUSD analysis: Support at 0.6963 holding up
Last Thursday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6963 or 0.6940.
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 Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047.
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 last Thursday that the price may have made a major bottom, but it seemed the bullish movement may be running out of steam. I thought that a sustained break below the support at 0.6963 would be a significant sign that more consolidative, choppy price action was getting established as a pattern. However, if alternatively, the price could get above 0.7000 properly, I thought that would be a bullish sign.
I think this was a good call as the price moved up but failed quickly once it broke above 0.7000.
The picture remains interesting as the price has retraced to the support level at 0.6963 which has held up so far. We may now get another bullish move and there could be a chance to enter here close to this support level with low risk.
I would take a bullish bias if the price is held up by 0.6963 going into the New York session and then starts to see some bullish momentum.
There is nothing important due today concerning either the AUD or the USD.