Yesterday’s signals were not triggered as there was no bearish price action at either 0.7870 or 0.7944.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken 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 0.7992.
- 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 ride.
Long Trade 1
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7778.
- 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 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’s FOMC release made a substantial impact upon this pair, driving it up strongly through resistance levels and a key bearish trend line, and forming two new higher levels of likely support. This is in line with the long-term bullish trend, so there is a good chance now the price may continue to move higher. At the time of writing, the support level of 0.7919 looks doubtful. If the price breaks below it, there is a chance the trend line nearby which is shown in the chart below may also be supportive, in addition to 0.7778.
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.