AUD/USD: Weakly bullish
Last Thursday’s signals were not triggered as there was no bearish price action at 0.6373 that day when it was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6382.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6320 or 0.6268.
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.
Remove 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 last Thursday that I expected the price would soon reach the next support level at 0.6268 which should be very pivotal – I was hoping to take a long there. This was a good call as the price made a low of the day very close to that price before moving up quite strongly, without unfortunately hitting the level and triggering the signal.
I see the key resistance now as at 0.6382 and the price is sitting right on it, so this is likely to be today’s pivotal point as we approach the New York open. If the price fails again there once the trading session is underway, I will take a short bias. If the price makes two consecutive hourly closes above that level, I will take a long bias. There is certainly plenty of medium-term bullish momentum in the Aussie to justify taking a long trade approach.
There is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the RBA will be giving a minor speech at 6am London time.