Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7553.
Place 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7621.
Place 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.
Remove 50% of the position as profit when the trade is 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.
AUD/USD Analysis
I wrote yesterday that I had no directional bias beyond thinking that a good bearish reversal might give an opportunity if either of the trend lines are retested. The lines were retested, and the price was able to move beyond them without reacting precisely, which is a bullish sign, and the technical picture now looks considerably more bullish. “Risk-on” sentiment has returned and that always boosts the Australian Dollar. Although there is some bullish momentum, it may be faltering as the price gets close to the 0.7600 which has acted as a cap on the price over recent days. However, the action has been very bullish, so I take a bullish bias today above 0.7553
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.