Yesterday’s signals produced a losing long trade from 0.6130.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Idea
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6164.
- Place 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.
Long Trade Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6126, 0.6102, 0.6067, or 0.6050.
- Place 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.
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 I expected the price to continue to rise, but the inflection area nearby at 0.6200 could produce some resistance.
I was seeking to take a long trade from a retracement and bullish bounce at any of the support levels.
This was mostly not a great call as after briefly rising, the price has fallen over the past day, and broken below the first likely support level I gave yesterday.
Overall, this seems to be a normal bearish retracement due mostly to a little strength in the USD which we are seeing everywhere. This means we still basically seem to have a bullish technical picture, which is supported by a broken trend line and several horizontal support levels below the current price.
I think long trades from bounces at support levels are the way to go today. The technical picture will start to look more bullish once the price has made a few hourly closes below the new resistance level at 0.6164. I would not want to take a short trade from a bearish rejection of that resistance level as I have little confidence in bearish follow-through.
There is nothing of high importance scheduled for today concerning either the USD or the AUD.