Yesterday’s signals were not triggered as there was no bearish price action at 0.7585.
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.
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 Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7577 or 0.7562.
- 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
The price has found new support over the short-term on its drive back up to the major long-term resistance at 0.7625. It is now rejecting a confluence of two resistant trend lines a little way below the 0.7625 level. There is still bullish momentum, but a bearish turn would not be a surprise. The most attractive scenario would be another push up to 0.7625 with a strong rejection of both that level and both of the trend lines, producing an interesting low risk, high reward short trade entry.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and the Chair of the Federal Reserve will be speaking at 6pm.