(MENAFN- Daily Forex) My previous signal on 31st
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
that occurs at the given levels.
Forex Brokers We Recommend in Your Region See full brokers list 1 Read full review Get Started AUD/USD Analysis
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.
Ready to trade our
daily Forex signals ? Check out this list of
the best Australian Forex brokers .
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.