Yesterday’s signals were not triggered as none of the key levels have been reached yet.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7398 or 0.7431.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7331.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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
I wrote yesterday that the bullish turn was looking quite weak, as though it would just be a normal pull back. It is looking stronger as the support has remained intact, but the price still has not managed to break above the resistance level at 0.7398. The nearest support and resistance levels are becoming increasingly pivotal in determining the most probable next medium-term move. The short-term price action suggests a test of the resistance will come first, before any test of the support.
Although the New Zealand Dollar fell sharply during the Asian session, the Australian Dollar, which is usually highly positively correlated with its neighbour’s currency, remained largely unaffected.
There is nothing scheduled concerning the AUD. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time.