AUD/USD: Support at 0.6327
Yesterday’s signals were not triggered as there was no appropriate price action at either the support or resistance levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6462.
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 0.6327 or 0.6250.
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 thought the best opportunity likely to set up here would be a short trade from a third touch of the bearish trend line. This did not happen until after the Asian session ended, but the trend line has held so far so I was on the right track. However, the price has also printed new higher support at 0.6327, the price action is bullish, and the price seems to be readying for a bullish breakout. Although we have some potentially bearish inflection points at previous swing highs, there is no clear resistance level until beyond 0.6400 so the price has room to rise. Risk appetite also seems to be holding up today and although this makes no sense from a fundamental perspective, that is what the price is doing so I would take a bullish bias if we get two consecutive hourly closes above the bearish trend line which is shown in the price chart below and is currently sitting at about 0.6360.
Regarding the USD, there will be a release of Unemployment Claims at 1:30pm followed by Flash Manufacturing PMI at 2:45pm London time. There is nothing of high importance due concerning the AUD.