AUD/USD Signal Update
Yesterday’s signals were not triggered as neither of the key levels identified were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hours period only.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7690.
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
I wrote yesterday that it looked as if the price will start to move up again, with a longer-term bullish trend line shown in the chart below remaining intact. The bullish trend line in fact had its first break in recent hours, but the key support area just above 0.7600 remains intact and the price is driving upwards with momentum. The area around 0.7700 is a key resistant hurdle. If the price can break up above there, we will have a real long-term bullish trend here. This is an interesting pair to watch and to use to exploit U.S. Dollar weakness.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Concerning the AUD, the RBS will release its Monetary Policy Statement at 12:30am.