Yesterday’s signals produced a losing long trade following the bullish inside candle rejecting the support level identified at 0.7554.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hours period.
Short Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7608.
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
Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7525 and 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
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 regarding the AUD. Concerning the USD, there will a release of PPI data at 12:30pm London time.