AUD/USD: Will 0.7000 see end of this bullish run?
Yesterday’s signals were not triggered as there was no bullish price action at 0.6774.
Today’s AUD/USD Signals
Trades must be entered from 8am New York time Wednesday to 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6868 or 0.6774.
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.
I wrote yesterday that I would definitely not take any short trade here today but would look instead to buy significant dips in intraday trading after New York opens. It is not likely that the price will retrace to the nearest support level at 0.6774 but if it did and made a bullish bounce, that would probably be a great opportunity to enter a long trade.
This was a great call as the price rose strongly over the day yesterday, so although the price never retraced to 0.6774, buying the dips on an intraday trading basis would have been a nicely profitable approach.
It may that we saw bullish exhaustion play out yesterday, with the price making an obvious climax at about 0.6950. This rally is arguably over-extended, so a deeper bearish retracement may be the next move. That would be supported by the fact that the price has got close to 0.7000 which is an extremely important psychological level likely to trigger profit-taking by holders of long positions.
I am prepared to take a long trade from a bounce at 0.6868, but if the price gets established below that level later, it could fall further quickly.
If the price reaches 0.7000 later today, it is very likely there will a strong bearish reaction as soon as it happens, so this could be a great short scalp for about 10 or 20 pips for any scalpers watching this pair.There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time followed by ISM Non-Manufacturing PMI data at 3pm.