AUD/USD: Yet key resistance level at 0.6579
Yesterday’s signals produced a profitable short trade from the bearish hourly pin candlestick which rejected the resistance level at 0.6579.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday to 5pm Tokyo time Thursday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6579.
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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of the zone between 0.6529 and 0.6515.
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.
Take off 50% of the position as profit when the trade is 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 yesterday that although the resistance at 0.6579 may hold, overall things here looked bullish, in line with the medium to long-term bullish trend.
I was ready to take a bullish bias upon a bounce at 0.6515.
This was a good call overall as the price did reverse at 0.6579 but the support level at 0.6515 has also held.
The price is now in a bullish consolidation between 0.6529 and 0.6579.
There is a long-term bullish trend and the Australian Dollar is benefiting from increasingly firm risk-on sentiment in the market.
For these reasons, I will take a bullish bias today if we get a bullish bounce between 0.6529 and 0.6515, at least until 0.6579.
If the price can get established above 0.6579, that will be a bullish sign.
If the price retests and fails again at 0.6579, that will be a weakly bearish sign.
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 3:30am London time.