Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 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 0.8069.
- 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 Trades
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7992 or 0.7941.
- 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
The RBA’s Rate Statement was released a few hours ago, and it contained no surprises. The only real note of interest was the anxiety expressed at the prospect of the implications of a significantly stronger AUD.
This pair is really going nowhere, just ranging in a wide zone between 0.7878 and 0.8069. There is a new level of possible support at 0.7991, so we may see the price rise from here as it is sitting right on this level as at the time of writing. There may also be support at a retest of the double bottom at 0.7961, and there is a more clearly expressed level below that at 0.7941.
The new and increasing support levels, as well as the long-term trend, do support taking a bullish bias.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.