Last Thursday’s signals provided a losing short trade following the bearish engulfing candle rejecting the resistance level identified at 0.7539.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trade 1
* Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7625.
* 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 0.7547 or 0.7505.
* 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 become hard to predict and it isn’t really going anywhere. As the AUD is a risk asset, it was boosted against the greenback following the French election result, but not by a very large amount. There is technically a long-term downwards trend in force, and if the price advances back to the resistant area above 0.7600, could well give more good shorting opportunities.
There is nothing due today concerning either the AUD or the USD. It is a public holiday today in Australia.