AUD/USD Forex Signal: Very Bullish Above 0.7750


Quarter-number at 0.7750 is the only remaining significant hurdle.

Yesterday’s AUD/USD signals were not triggered, as there was no suitable price action when any of the key support and resistance levels identified were reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must 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 0.7747 or 0.7776.

  • 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 0.7716, 0.7697, 0.7662.

  • 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.

Advertisement

AUD/USD Analysis

I wrote yesterday that it seemed likely that the key resistance level at 0.7702 was going to be pivotal with bulls needing to get the price to hold up above 0.7702 to really change the dominant bearish pattern. I also thought that the resistance at 0.7722 looked likely to be firm, so I saw the upside as likely to be limited.

I was wrong about the upside being limited, with bulls pushing the price up over the past day to clear every resistant hurdle (including bearish trend lines which are still shown in the price chart below). However, I was correct about 0.7202 being pivotal as once the price cleared that level a few hours ago it began to advance more easily.

The technical picture is now considerably more bullish as the U.S. dollar has begun to weaken everywhere, with the Aussie advancing more strongly against the greenback over recent hours than any other currency. Risk sentiment generally continues to improve with several major stock indices climbing to new all-time highs. Crude oil is also near a 1-year high. These are bullish conditions for this currency pair.

The price may now take some time to consolidate in the absence of any major scheduled news releases. However, if it continues to rise today and gets established above the major quarter-number at 0.7750, that will suggest a further rise over the near term to 0.7776 at least.

A long trade entry from the new support confluent with the broken bearish trend line which seems to be flipping to support at 0.7716 could also be a good trade.

I do not see any good short trades as likely to set up here today.

AUD/USD chart

There is nothing of high importance scheduled today regarding the AUD or the USD.



Source link

We will be happy to hear your thoughts

Leave a reply