Last Thursday’s signals were not triggered as neither of the key levels were reached during that session.
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 0.7625.
* 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 Trade 1
* Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7588.
* 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
There is still a long-term bullish trend, but higher time frame charts such as the daily chart are beginning to be suggestive of a topping out above 0.7700. This would not be a surprise technically, because that area has been strongly resistant for several months and was always likely to be pivotal. The price is now established on the shorter time frames within a bearish channel as marked in the chart below, although there is a chance that a bullish double bottom will be made at the important support level of 0.7588, rather than the price falling straight down to touch the lower trend line over the near term.
Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time. Regarding the AUD, there will be a release of Trade Balance data at 2:30am followed by the RBA Rate Statement and Cash Rate at 5:30am.