Last Tuesday’s AUD/USD signals were not triggered, as the reversals that day happened beyond both the identified support and resistance levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be entered prior to 5pm Tokyo time Friday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7600, 0.7636, or 0.7649.
- Place 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.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7600 or 0.7542.
- Place 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.
- Take off 50% of the position as profit when the price reaches 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 Tuesday that if that the price held up above 0.7508, there is some short-term hope for bulls.
However, I also thought that the resistance level at 0.7550 looked likely to be strong so I was seeking a short trade from there.
Both levels were exceeded, so this was not a useful call.
The bullish recovery continues here as it does in many riskier assets against the USD which is weakening somewhat despite having long-term strength.
Although the price is currently rising from support, there is an inflective point overhead confluent with the round number at 0.7600 which looks likely to be strong resistance.
I am ready to take a short trade here from any good bearish reversal we might get at 0.7600 later today. I am not interested in a long trade.
Concerning the USD, there will be releases of final GDP and unemployment claims data at 1:30pm London time. There is nothing of high importance scheduled today regarding the AUD.