Last Thursday’s signals were not triggered as there was no bullish price action at 0.8000 or 0.7968.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 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 0.8069.
- 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 Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7968.
- 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
This pair made a new 2-year high last Thursday, peaking just a few pips below the anticipated resistance level at 0.8069. The price subsequently took out the support level at 0.8000, and is right in the middle of a wide zone where it could range without meeting any key levels. Over recent hours, the price has begun a short-term consolidation right in the middle of this ranging zone. This is not a surprise as there is crucial data due later from the RBA and the market is probably awaiting direction from this event. I maintain a medium-term bullish bias due to the strength of the trend and the recent major breakout.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA Rate Statement at 5:30am London time.