AUD/USD: New 1-year high prices again yesterday
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at 0.7152 was first reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8 am New York time Thursday to 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7118, 0.7109, or 0.7035.
- Place the stop loss 1 pip below the lowest recent price.
- Adjust 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 ride.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7197.
- Place the stop loss 1 pip above the highest recent price.
- Adjust 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 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 it seemed now that this strong bullish movement we had seen may be taking a rest at the area of resistance it had reached, but I thought a continued advance was possible. Therefore, I was prepared to take a bullish bias if we got two consecutive hourly closes later above 0.7152, up to 0.7197.
We did get two consecutive hourly closes above 0.7152, but unfortunately, this was a losing trade, as the price reversed right away.
The price action here is choppy and has invalided the former resistance level at 0.7152.
The short-term price action now is indicating there will be a further move down now. There is key support at 0.7118 and 0.7109 which may produce a good long trade entry, but I think it is more likely to break down and we will probably see a pullback to at least 0.7100 and possibly lower over the course of today.
I do not really want to be short but would prefer to see this likely pullback before thinking about entering any long trade.
There is nothing of high importance scheduled today concerning either the AUD or the USD.