Last Thursday’s signals were not triggered as neither of the key levels were reached during that session.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Go shortfollowing some bearish price action on the H1 time frame immediately upon the next touch of0.7559 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 of0.7517.
- 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
This pair made a very bullish move last Thursday which really stands out on the chart, with strong volatility. This took the pair out of a bearish channel, although recent hours have seen it fall strongly from the swing high at 0.7610. There is no long-term trend so the most interesting feature is the retest of the broken bearish trend line which might happen soon, although the pair may already be bouncing from the support at 0.7539. By the time of the New York session it will make sense to look instead at the lower support level just above the psychologically important level of 0.7500 which might start to provide an additional supportive influence.
There is a new resistance level at 0.7559 but I would be very cautious taking a short trade off it as it looks relatively weak.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Building Permits data at 1:30pm London time.