My previous signal on 21st May produced a profitable long trade from the bullish bounce at $0.6651.
Today’s AUD/USD Signals
- Risk 0.75%
- Trades must be entered before 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 $0.6682, $0.6696, or $0.6737.
- 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 H1 time frame immediately upon the next touch of $0.6660, $0.6649, $0.6644, or $0.6621.
- 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.
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 in my previous forecast one week ago that the AUD/USD currency pair was consolidative between between support at $0.6651 and the area just above $0.6700.
I was preferring a long trade that day and this was a good call as $0.6651 was effectively supportive.
We have seen the price turn more bullish in recent days, with the price rising steadily if unspectacularly as stock markets mostly advance and risk-on sentiment comes to dominate, which tends to boost the Aussie and weaken the greenback.
Technically, this recent rise has printed several higher stairstep support levels, which suggests the line of least resistance is upwards.
Despite that, there is strong resistance not far overhead at $0.6682. If the price advances to reach that level, there could be a chance for a good short term short trade if there is a bearish rejection there, but only for a relatively small profit.
There would seem to be more potential in a long trade from a bullish bounce which might happen soon at $0.6660, $0.6649, or even $0.6644. If the bullish bounce quickly rejects $0.6650, that would be even better.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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