AUD/USD: Trading above big round number of 0.6500
Last Tuesday’s signals produced a short trade from the bearish rejection of the resistance level identified at 0.6547, although it only gave the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6579 or 0.6683.
- 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 0.6506 or 0.6473 or 0.6436.
- 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 last Tuesday that there was no reason not to remain bullish as the technical picture simply stayed bullish, and the USD was losing ground almost everywhere. This was a good call as the price has continued to advance to new highs over the past two days, with the USD still relatively weak everywhere and the AUD strong on increasing and firm risk appetite despite the impact of the coronavirus pandemic.
It is also a technically bullish sign that the price has become well established above the big round number at 0.6500.
I would look only for long trades here unless we get unemployment claims data later which is far worse than the market consensus, as that could dent risk appetite. I am only interested in long trades here for the time being.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing of high importance due today concerning the AUD.