Yesterday’s signals produced a short trade right at the end of the Asian session following the bearish break below the outside near-pin candle rejecting the resistance level identified at 0.7506. I am not optimistic that this trade will become profitable so it would seem sensible to make this a very small position if possible.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over 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 0.7547.
- 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 Trade 1
- Long entry 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 picture is looking increasingly bullish, as we see the former resistance level at 0.7466 flip to act as new support, and the currency nearest resistance level at 0.7506 is challenged by bullish price action. It looks as if this level will break.
The long-term trend is indeterminate.
There is nothing due today concerning either the AUD or the USD.