Last Thursday’s signals were not triggered as unfortunately the bullish price action took place a little way below the support level identified at 0.7500. Nevertheless, it was very effective indicative support.
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 0.7608.
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
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7554 or 0.7400.
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 has found strong support and printed a convincing U-shaped bottom at the key psychological and supportive level I had identified at 0.7500. It is continuing to move up and the pair is again in a technically bullish long-term trend. The price is quite likely to continue upwards to test the next resistance level of 0.7608.
There is nothing due today concerning either the AUD or the USD.