My previous signal on 6th March was not triggered as there was no bearish price action when any of the resistance levels were first reached that day.
Today’s AUD/USD Signals
- Risk 0.75%
- Trades may only be taken prior to 5pm Tokyo time Friday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6633 or $0.6737.
- Put 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6590, $0.6559, or $0.6534.
- Put 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 in my previous forecast just over one week ago that the AUD/USD currency pair had made a bullish break above a bearish price channel, and that it would be a very bullish sign if the price had gotten established above the resistance level at $0.6534.
This was a good call and acted as an effective signal for a profitable long trade, with the day closing firmly higher.
The price then topped out at around $0.6650 a couple of days later, and then went on to print lower resistance at $0.6634 with the price consolidating between there and $0.6590.
The price action looks very flat, and it is hard to see the next major directional move. I do not have a directional bias.
I see the best approach here today as scalping reversals from any key level. However, we may see more volatility in this currency pair after the US data releases get underway when New York opens.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be releases of PPI, Retail Sales, and Unemployment Claims data at 12:30pm London time.
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