Yesterday’s signals were not triggered as there was no bullish price action when the price reached 0.7588.
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 Trades
* Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7588 or 0.7625.
* 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 touch of 0.7529.
* 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
Higher time frame charts such as the daily chart are becoming increasingly 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 strongly on the shorter and medium time frames within a bearish channel as marked in the chart below, with a bearish break below the former support level at 0.7588 completing the bearish picture.
The support at 0.7529 is beginning to look interesting as there is a confluence of the price channel’s lower trend line and the horizontal level. The last touch of this lower trend line was a relatively long time ago, but as it is closely parallel to the channel’s upper trend line it looks reasonably valid.
There is nothing due today regarding the AUD or the USD.