Yesterday’s signals produced a losing short entry following a bearish candlestick rejecting the resistance level identified at 0.7650.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken 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 0.7683.
* 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 Trades
* Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7632 or 0.7558.
* 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 about how the bullish bounce off the identified support level at 0.7558 could be significant, and it seems to have been so with the price being bid up with increasing volatility from that area. Another bullish sign is that the price has broken up past the resistance level of 0.7650 after taking some minor selling there. Ideally, I want to see some more bullish consolidation before feeling fully bullish on this pair. There is a long-term bullish trend, which helps the bullish case.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Crude Oil Inventories data at 2:30pm London time.