AUD/USD Signal Today - 06/02: Stronger On RBA Hawkish Tilt
Date
2/7/2024 12:48:43 AM
(MENAFN- Daily Forex) My previous signal on 31st
January
produced a very profitable short trade from the bearish rejection of the resistance level at $0.6620 by a doji candlestick on the H1 chart's AUD/USD Signals
Risk 0.75% Trades
must be entered before 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 $0.6520 or $0.6528 or $0.6622. Place the stop loss 1 pip above the local swing high. Move the stop loss to break even once the trade is 20 pips in profit. Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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 $0.6456. Place 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. Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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.
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I wrote in my previous forecast one week ago that the
AUD/USD currency pair
was consolidating between $0.6528 and $0.6622. I thought the best approach would be to play reversals at the extremes. This was a great call, as it produced a profitable short trade from $0.6622.
The technical picture remains mixed. The consolidation held until last Friday when we got a bearish breakdown. However, just a few hours ago, the Reserve Bank of Australia made a hawkish tilt in its policy statement, sending the price higher.
We now see the price coming up to touch a small zone of likely resistance between $0.6520 and $0.6528. This looks very likely to be today's pivotal point, so if the price can get established above this zone later today, it should have room to rise further. However, I see the better and more likely opportunity as being a short trade from a bearish reversal from this zone, so that is the trade I would really be looking for today.
There is nothing of high importance due today regarding either the AUD or the USD.
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