Yesterday’s signals were not triggered as none of the key levels were reached yet.
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 0.7398 or 0.7431.
- 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
The long-term downwards trend continues, due partly to a generally strengthening USD but mostly due to disappointing Australian Retail Sales data which was released earlier. The price reached to within a few pips of the support level identified below at 0.7331, and has already made a small bullish bounce. Be careful looking for longs there as it may need a little time to turn around after falling with some momentum.
Regarding the AUD, there will be a release of the Annual Budget at 10:30pm London time. There is nothing due concerning the USD.