Yesterday’s signals produced a losing short trade following the bearish inside candle break from the resistance level at 0.7506.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade
- Short entry following some bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7506 and 0.7517.
- 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 0.7486 or 0.7429.
- 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 remains confused, there is a long-term bearish trend but a fairly stable short term bullish trend. There is a zone of resistance getting established just above 0.7500 which is a major psychological number and so it might hold. Watch the supportive levels carefully, and a break of the dominant bullish trend line should signify a major medium-term trend change.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.