Yesterday’s signals were not triggered as there was no bullish price action at 0.7566.
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 0.7517 or 0.7498.
- 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 strong long-term resistance at 0.7625 has held, and the price has broken bearishly below the pennant sketched out within the chart below. The price is also trading below the former support level at 0.7566 which has now been erased. This suggests a move down to the 0.7500 area, which has been strong support, is now likely over the short-term. A sustained break below 0.7498 would be another bearish sign.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.