Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trade
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7486 or 0.7506.
- 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
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7429.
- 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
The picture has been quite confused, the price fell sharply earlier as the AUD was hit by the Chinese rating downgrade, but recovered strongly and quickly after forming a new supportive trend line. It looks as if the price will reach the next resistance level at 0.7486, but what will happen there is a guess.
The long-term trend is indeterminate.
There is nothing due concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.