AUD/USD: Bulls and bears struggling over 0.6900 area
Last Thursday’s signals may have produced a profitable short trade from the bearish rejection of the resistance level identified at 0.6892.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8 am New York time Monday until 5 pm Tokyo time Tuesday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6774.
- Put the stop loss 1 pip below the lowest recent price.
- Move 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 run.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6892 or 0.6918.
- Put the stop loss 1 pip above the highest recent price.
- Move 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 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 last Thursday that due to the narrowing technical picture of consolidation, I was prepared to take a long trade from a bullish reversal at 0.6774 or alternatively, to be bullish if the price would get established above the major round number at 0.7000. Neither of these scenarios have been set up yet so it was at least enough to keep out of trouble.
The technical picture is unchanged, with the price remaining within the narrowing triangle without a breakout. The pivotal point within the triangle seems to be at 0.6892 or maybe the round number close by at 0.6900.
Just like last Thursday, I will avoid trading this currency pair above 0.6774 and below 0.7000, with the exception of a long trade from a bullish bounce at 0.6774 if it happens.
There is nothing of high importance scheduled today regarding either the AUD or the USD.