Yesterday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at 0.7624.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 2pm 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 0.7645.
- 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 0.7577 or 0.7562.
- 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
Yesterday saw a strong downwards movement and I saw some likelihood this would continue. After a bullish retracement, we now have another thrust down from new resistance at 0.7629. As this pair has no real long-term trend, I expect it to continue to range within the 0.7700 to 0.7200 area, roughly, so a strong rejection such as this of an area near the top of the range could signify the start of a long-term downwards movement.
Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm. Concerning the AUD, there will be a release of Trade Balance data at 2:30am London time.