Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hours period only.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7704 or 0.7731.
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 run.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7606.
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 run.
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
This pair is still in a long-term bullish trend, but just cannot break up above the very long-term resistant area above 0.7700. There have been a few attempts but the price has not managed to get above 0.7740. The longer the price remains compressed close to 0.7700 without a bullish breakout, the more probable a sharp fall to 0.7600 and possibly below will become. Note that despite the bullish trend, a major reversal in this area that gives hundreds of short pips is quite possible – possible enough for it to be good shorting odds.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.