Last Monday’s signals produced an excellent and very profitable short trade following the bearish hourly engulfing candle which rejected the resistance level at 0.7547. It would probably be wise to take profit now.
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 0.7431 or 0.7463.
- 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
This pair is now much more clearly in a long-term bearish trend, as recent days have seen the price break strongly below key support levels, following the reversal off a dominant bearish trend line at 0.7463.
It looks as if the price has a lot of room to fall as there is no key support before 0.7331, so another short trade from a reversal at any of the resistance levels identified could be a fantastic opportunity.
Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Regarding the AUD, there will be a release of the RBA Monetary Policy Statement at 2:30am.