AUDUSD: Bulls failing to make new highs
Yesterday’s signals were not triggered as none of the key levels have been reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time today and 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6917 or 0.6940.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6830 or 0.6800.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 although the technical signs were all bullish, bulls should be aware that the price was approaching a key pivotal zone which begins above 0.6868, so it may be time for a pause in the bullish movement.
This was a good call, as the price has failed to rise higher over recent hours, so it seems that we are sue for at least a bearish pullback within the strongly bullish move of recent days. The next key thing to watch out for, I think, will be whether the support at 0.6830 or at worst 0.6800 hold up. If so, the bullish move will be likely to continue, so I would still take a bullish bias if get a solid bullish bounce at either of those levels after a deeper bearish retracement.
There is nothing of high importance due today concerning either the AUD or the USD.