AUD/USD Forex Signal
Today's AUD/USD Updates
Risk 0.75%
Trades must be taken before 5 pm Tokyo time Wednesday.
Short Trade Idea
Short entry after a bearish price action reversal on the H1 time frame, right after the next hit of the upper trend line depicted in the price chart below, which is now at about $0.6835.
Set the stop loss one pip above the current swing high.
Once the trade is 20 pips in profit, move the stop loss to break even.
When the price reaches 20 pips in profit, take 50% of the position as profit and allow the rest to ride.
Long Trade Idea
Long entry after a positive price action reversal on the H1 time frame and the next touch of $0.6781, $0.6762, or $0.6731.
Set the stop loss one pip below the current swing low.
Once the trade is 20 pips in profit, move the stop loss to break even.
When the price reaches 20 pips in profit, take 50% of the position as profit and allow the rest to ride.
The simplest way to see a typical "price action reversal" is for an hourly candle to finish with a higher close, such as a pin bar, doji, outer candle, or even just an engulfing candle. You may profit from these levels or zones by keeping an eye on the price activity that occurs at the given levels.
AUD/USD Analysis
I believed a bullish bounce at $0.6732 would be good for swing traders as a long trade entry, but the bounce was so short-term that it was only suited for scalpers.
Since then, the technical picture has stayed positive, although it is a sluggish trend with several severe drops.
According to the price chart below, the price is increasing within a bullish wedge. Although the bullish impetus is slow or nonexistent, and the Australian Dollar is weak, the steady increase is being supported by a declining US Dollar.
What's most intriguing for bulls here is that there are no critical resistance levels above $0.6953, implying that the price has lots of opportunities to grow.
Before the price may become positive, risk sentiment must shift from risk-off to risk-on.
Although we cannot predict if risk sentiment will change, I believe long swing trades or scalps from bullish rebounds at any of the closely listed support levels appear appealing, particularly as scalps.
There is nothing significant due today for either the AUD or the USD.