AUDUSD: Bullish above 0.6809
Yesterday’s signals were not triggered, as there was no appropriate price action at any of the key support and resistance levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6832, 0.6850, or 0.6870.
- 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
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6809 or 0.6769.
- 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 the New York session was likely to determine whether the support at 0.6731 will hold. I saw this as a pivotal level. I was off by a few pips, but this was broadly a good call as the low at 0.6727 was made as New York got underway and then the price rose strongly from there, boosted by better than expected Australian employment data. The break above 0.6809 seems to complete a bullish head and shoulders neckline break on a daily chart, so the picture is much more bullish as long as the price can remain trading above that level.
I would take a bullish bias if we get a nice supportive bounce at 0.6809 following a retracement to that level.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.