My previous AUD/USD signal on 4th November produced a nicely profitable long trade from the bullish bounce off my support level at $0.6463.
Today’s AUD/USD Signals
- Risk 0.25%
- Trades may only be taken prior to 5pm Tokyo time Wednesday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6542, $0.6560, or $0.6595.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6499 - $0.6490, $0.6463, or $0.6455.
- 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.
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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 last Tuesday, I wrote that the support level at $0.6494 was likely to be today’s pivotal point. I thought that long from here could be a risky but potentially rewarding trade and would have been happy to take a short trade once the price was established below that level.
This was an excellent, accurate call.
Although the Australian Dollar was relatively strong and volatile as the week opened, advancing with improving risk sentiment, as the US Dollar has been also advancing with risk and not acting as much of a safe haven, we have tended to see low volatility in this currency pair, and we still see this.
As it is a public holiday today in the USA, and risky assets are mostly consolidating anyway, I think we will just see the price here range today between the inflection at $0.6516 and the resistance level at $0.6542 until the Tokyo open.
Scalpers might try to exploit this range either long or short in the current market environment.
There is nothing of high importance scheduled today concerning either the AUD or the USD.
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