AUD/USD Signal Update
Last Thursday’s signals produced a losing short trade following a bearish outside candle rejecting the identified resistance zone beginning at 0.7570.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hours period.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the first entry into the zone between of 0.7570 and 0.7582.
Put 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the first touch of 0.7500.
Put 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.
Take off 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
The rise has slowed but there are no compelling reasons to stop being bullish yet. The price has found it hard to break up above the zone beginning at 0.7570, but the bullish trend line is still holding. I also see the key psychological level at 0.7500, which was a flipped pivot on the daily chart, as likely to provide further support even if the trend line shown in the chart below does break down.
There is nothing of high importance due today concerning either the AUD or the USD.