Yesterday’s signals were not triggered as there was no bearish price action at 0.8000.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trade 1
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.8069.
· 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 Trades
· Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.8000 or 0.7968.
· 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
I made a good call yesterday in identifying 0.7878 as a new double bottom from which the price was most likely to rise over the coming hours. The price broke strongly above the psychologically key 0.8000 level following the FOMC release which was bearish for the U.S. Dollar, peaking in recent hours just below the higher resistance level at 0.8069 from which it is falling after a very clear bearish turn in the price.
The price has made a new 2-year high, although there are still some key historical inflections all the way up to 0.8300, so progress higher may not be as fast as it could be on other very bullish currency pairs, such as the EUR/USD, which seems to have clearer “blue sky” ahead of it.
There is nothing due today concerning the AUD. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time.