Yesterday’s signals were not triggered as there was no bullish price action at 0.7992 and the level at 0.7941 was never quite reached.
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 0.7992.
- 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 0.7941 or 0.7878.
- 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 price fell and came within a whisker of the support level at 0.7941, where it has found support in recent hours. The longer this level holds, the more likely it is that we are going to see an upwards movement to the 0.8000 area and a test of the next level of resistance. A break below 0.7941, alternatively, would be a bearish sign and put the continuation of the long-term bullish trend in some doubt. Meanwhile, I maintain a bullish bias.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed by Crude Oil Inventories at 3pm. Concerning the AUD, there will be a release of Trade Balance data at 2:30am.