My previous AUD/USD signal on 9th April produced a profitable long trade from the bullish bounce off $0.7026.
Today’s AUD/USD Signals
Risk 0.25%
Trades must be entered prior to 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.7213, $0.7248, or $0.7275.
Place 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
Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.7100, $0.7079, or $0.7057.
Place 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.
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 on Thursday last week, I wrote that we were starting to see a more bullish picture after President Trump announced a two-week ceasefire in the war with Iran. This increased optimism that a deal could be negotiated and damage halted, which boosted risk assets such as the US Dollar, and sent the price of havens like the US Dollar lower. The lessening of the inflationary energy effect also weakened the US Dollar.
I saw the support level at $0.7026 as likely to be the day’s pivotal point – this was an accurate and profitable call.
Things are continuing to go in the same direction, as markets continue to indicate there is an expectation that a deal between the USA and Iran will be concluded within the coming weeks (June is seen as most likely).
We have seen a technical breakout above the $0.7100 area on the strength of this sentiment. The price has no resistance levels overhead before the $0.7200 area, so it should have room to rise today.
Day traders may have an opportunity here today to buy dips on short-term price charts, as long as the price is not too close to the $0.7200 area. Longer-term traders are probably better off only buying from a bounce at $0.7100 following a bearish retracement.
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There is nothing of high importance scheduled today concerning the AUD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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