My previous AUD/USD signal on 17th December was not triggered.
Today’s AUD/USD Signals
- Risk 0.25%
- Trades may only be taken before 5pm Tokyo time Wednesday.
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Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6720 or $0.6743.
- Put 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
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6696, $0.6679, or $0.6661.
- Put 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.
AUD/USD Analysis
In my previous AUD/USD forecast almost two weeks ago, I wrote that the price was likely to range between $0.6602 and $0.6659. I had more faith in the support level than in the resistance level.
This was not an accurate call.
The technical picture now in this currency pair is looking more bullish, as the price rises to test new medium-term highs. However, we are seeing the start of what looks like the final shoulder of a bearish head and shoulders chart pattern as the price fails to get established above resistance around $0.6720.
This suggests that we are likely to see a bearish pullback now. The good news for bulls is that there are several support levels close below, and if the price falls quite quickly to the area below $0.6679 and above $0.6661 and then starts to recover, this could be a good buy signal to enter a swing trade in this currency pair long, as we are starting to see some strength in the Aussie.
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