Yesterday’s signals produced a profitable short trade following the bearish engulfing candlestick rejecting the resistance level identified at 0.7335, although this trade gave only a little more than the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 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 0.7939.
- 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 0.7835.
- 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 Reserve Bank of Australia released the minutes of its most recent meeting a few hours ago, which showed the central bank taking a bullish view on the economy. This has made the market feel a rate hike is probably forthcoming, and this has boosted the Aussie to a 2-year high price against a weak U.S. Dollar. The price is very bullish, cutting through “blue sky”, and looks likely to rise higher. In fact, technically, this looks like the strongest trend currently in the Forex market. There is resistance not far ahead but it may well be ignored; what could be more significant might be the psychologically important 0.8000 level.
There is nothing due today concerning either the AUD or the USD.