Last Thursday’s signals were not triggered as none of the key levels were reached during the previous session.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7625.
- 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 0.7566.
- 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
We now see this pair’s strong advice being held by strong resistance at 0.7625. This is, provisionally, a bearish sign, but there have been no breaks of key support levels yet. Until that happens, it would be correct to call this a pause in the upwards movement. It is worth noting though that the levels at 0.7625 and 0.7750 have provided strong, long-term resistance, so a major bearish reversal is quite possible here. If it happens, it will probably be driven primarily by a strengthening of the U.S. Dollar, and will be most strongly felt in the EUR/USD currency pair.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.