Yesterday’s signals were not triggered, as the anticipated support level at 0.7873 was no reached until right at the expiry of the specified trading session.
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.
Short Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7913.
- 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
I wrote yesterday that the price looked to be heading towards the key potential support level of 0.7873, and that it was very likely there would be a bounce there. This is exactly what happened, with the Australian Dollar looking quite weak despite the long-term bullish trend. The bounce is still playing out as at the time of writing, but it looks like it will be weak and the support here at 0.7873 will probably break down. Another bearish sign is the new resistance level which can be drawn not far above at 0.7913, with the price action there and close by generally looking bearish. Unless there is a major change in sentiment on the U.S. Dollar, a further fall towards 0.7800 seems probable.
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.