Yesterday’s signals were not triggered as unfortunately the price was just short of reaching the resistance level at 0.7445.
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 0.7446 or 0.7463.
- 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
I was looking for a short yesterday at 0.7445 and unfortunately the high in the late Asian session reached to within just 1 or 2 pips of that level before dropping sharply, so the level/area is certainly strong and accurate. It is significant that at a time when the USD is weak, the AUD is even weaker. The long-term trend is also bearish which gives more emphasis to a continuation of the downwards movement, so another test of the support at 0.7331 is quite likely.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 2:30am.