My previous AUD/USD signal on 11th December was not triggered.
Today’s AUD/USD Signals
- Risk 0.25%
- Trades must be entered before 5pm Tokyo time Thursday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6634, $0.6659, or $0.6696.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6602, $0.6598, or $0.6584.
- 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.
- Remove 50% of the position as profit when the price reaches 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.
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AUD/USD Analysis
In my previous AUD/USD forecast last Thursday, I wrote that the recent break with the ascending linear regression analysis was a signal that we might see a sharp fall following a break below the old support level at $0.6629.
This was a good call insofar as this support level held and was clearly the pivotal point of the day, although I was wrong about the direction of the trade opportunity.
The price has started to gently drift down after consolidating over the past week, but the price movement is quite minimal. The Australian Dollar isn’t getting much attention these days, as it is not acting as the risk barometer that it used to tend to be.
I think the best opportunities here are likely to be:
- A long from a bullish bounce at $0.6602, especially if the round number at $0.6600 is rejected at the same time.
- A short from a bearish rejection of $0.6659.
I do not have much faith in the resistance level at $0.6659.
There is nothing of high importance scheduled today concerning either the AUD or the USD.
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