Yesterday’s signals were not triggered as the price never quite reached the support level identified at 0.7331, but the level has acted as support which could have produced a profitable long trade during the New York session yesterday.
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 0.7398 or 0.7431.
- 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 0.7331.
- 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
The support level I identified at 0.7331 has been more solid than I expected. I suggested yesterday to be careful taking any longs there, and although the low was 1 pip above that level, we have seen a gradual bullish turn there, confirmed by a break of the bearish trend line drawn within the chart below. Nevertheless, the upwards movement does not look very strong, and there is a long-term downwards trend still in force, so it still looks as if the bullish movement is just a normal pull back so far.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.