Yesterday’s signals were not triggered as none of the key levels were ever reached during that session.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7625.
- 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 0.7566.
- 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
There is a bullish pennant formation which is being held by strong long-term resistance at 0.7625, the top of which is now completely confluent with this level. This means the next test of that price is likely to be crucial as a third touch: either a breakout or at least a medium-term reversal are likely scenarios. There might well be more room to the downside, as there is plenty of long-term resistance around 0.7700 and 0.7750 above.
There is nothing due today concerning either the AUD or the USD.