Yesterday’s signals were not triggered as the price action at 0.7939 was insufficiently bearish.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 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 0.7939.
- 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 0.7835.
- 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 held up in line with the recent strongly bullish breakout to new long-term highs above key resistance levels, but the price is now threatening to form a resistant double top at 0.7939. However, I am doubtful that the highs here are going to hold for long, the action still has a feel as if it will make higher prices. The difficulty is that it is hard to see where the support is that will be effective. My best guess is that the price will fall to an area around the round number at 0.7900, from where it will rise again and make new highs.
There is a long-term bullish trend.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 2:30am London time.