Last Wednesday’s signals were not triggered as none of the key levels were ever reached during that session.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7506 or 0.7547.
- 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 0.7452 or 0.7431.
- 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
There is technically a long-term bearish trend, but it is very narrowly expressed and the truth is, there is no real trend in this pair.
The chart shows a very classic and strong bullish Quasimodo/over and under pattern centred on the support at 0.7450. At the time of writing, the price has risen from this formation strongly and is attempting to break up past a key resistance level at 0.7506. It might hold, but it looks as if a further rise and cleaner rejection of 0.7547 would be a better trade.
There is major data due later, so anything might happen then.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm. Regarding the AUD, there will be a release of the Cash Rate and RBA Rate Statement at 5:30am.