Yesterday’s signals were not triggered as neither of the key levels were ever reached.
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 0.8000.
- 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 0.7836.
- 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 current consolidation pattern within a longer-term bullish trend has gone on for five days now. The gold lines in the chart below are not key levels but clearly mark the borders of the current consolidation, with a double bottom just forming now at 0.7878 and a triple top already having formed at 0.7968. It looks as if the price is most likely to rise now from this double bottom over the coming hours. If the FOMC release weakens the U.S. Dollar, this could be a good long position to be holding at that time.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm.