Yesterday’s signals were not triggered as the bearish price action took place above 0.7939.
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 0.8000.
- 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 0.7836.
- 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 was correct yesterday in seeing the resistance as unlikely to hold, but wrong in thinking we would see a pull back to the round number at 0.7900 before the price would go higher. The price peaked a little way before the large round number at 0.8000 and has been selling off with conviction ever since. It is an open question how much further it will fall before the bullish momentum will resume. There is a long-term bullish trend and a strong bullish breakout in play, so another bullish move up is more likely than not to happen soon.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.