Yesterday’s signals were not triggered as unfortunately the price never quite reached the anticipated resistance level of 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 Trades
* Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7529 or 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
For another day, the medium-term bearish picture continues following the turn down from the 0.7750 area, with the bearish channel shown in the chart below remaining intact. The closest inner bearish trend line was again rejected just below 0.7588, this time with a bearish “dark cloud” candle combination formation. The situation looks bearish all over, but we will soon have the big round number of 0.7500 confluent with the channel’s lower trend line, and this could be ripe to act as support for at least a pull back.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Unemployment Claims data 1:30pm London time.