AUDUSD: Bulls hold up above 0.7000
Yesterday’s signals may have produced a profitable long trade from the doji candlestick rejecting the 0.7000 area which formed on the hourly time frame close to the New York open.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday until 5pm Tokyo time Friday.
Long Trade Ideas
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7025 or 0.6983.
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 Ideas
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047 or 0.7088.
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 key question would be what will happen at 0.7000, which is a major round number and psychological level. I was ready to take a weak bearish bias if the price could get established below that level.
As it happened, it was the pivotal point for the day, but there was a bullish bounce which has seen the price rise to about 0.7030, and it seems we have re-established the higher support at 0.7025.
Although the bullish move seems to have run out of steam now, a bullish break above 0.7047 would be a bullish sign and suggest higher prices, so I would look to take a bullish bias if that happens.
I think 0.7047 is likely to be today’s pivotal point, or if not that, then 0.7025.
There is nothing of high importance due today regarding the USD. Concerning the AUD, there will be a release of Employment Change and Unemployment data at 2:30pm London time.