AUDUSD analysis: Bulls still pushing price up towards key 0.7000 area
Yesterday’s signals were not triggered, as the support level at 0.6940 was not quite reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Wednesday 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 0.6940.
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 Trades
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 yesterday that the short and medium-term pictures were solidly bullish. I thought that the price was quite likely to reach 0.7000, but that it would probably not get much further than that before turning bearish and making a bearish retracement. Alternatively, if the price retraced first to 0.6940 and bounced bullishly there, I was ready to take a cautious bullish bias.
This was a good call, as the price did fall to just a pip above 0.6940 and then rise quite firmly to new high prices, reaching a maximum just a few pips below 0.7000. Interestingly, the USD has strengthened over recent hours, but is falling here against the Australian Dollar, which shows that the AUD has good relative strength.
I would like to take a cautiously bullish bias here, but the big round number at 0.7000 may be too much to break right now. If the price can close above 0.7000 for three hours consecutively later I would take a bullish bias and expect a continuation of the bullish price movement up to the next resistance level at 0.7047.
Concerning the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time. There is nothing of high importance today regarding the AUD today.