Yesterday’s signals may have provided a profitable short trade following the very bearish candle rejecting the resistant zone identified from 0.7747 to 0.7760.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time to 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 entry into the zone between 0.7747 and 0.7760.
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 entry into the zone between 0.7636 and 0.7625.
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 the area around 0.7750 was looking very pivotal, with either a significant bullish breakout or strong fall probably on the cards. It looks as if it is going to be the latter, with the multi-month resistance holding firm and containing the price, which has already come very close to touching the nearest support at 0.7637.
The pair is still technically in a long-term bullish trend, but if the price quickly breaks below the supportive zone just above 0.7600, it will probably be over, and if the price gets below 0.7500 without recovering, it will be over
.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Crude Oil Inventories at 2:30pm London time.