Yesterday’s signals produced a nice short trade following the bearish reversal at the resistance level of 0.7992, which is currently in decent profit and is still moving in the right direction, so it worth letting run until the momentum stops or 0.7916 is reached, whichever happens first.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 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 0.8069.
- 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 run.
Long Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7916 or 0.7873.
- 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 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 price rose to the resistance level just below 0.8000 from where it is falling convincingly after trading within a bullish channel marked by the trend lines in the chart below, which is still intact. As the level is already in effect, another hit today should not be taken. Instead, bulls can wait for a retrace and bullish bounce at 0.7916 before looking to go long in line with the weak long-term bullish trend.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Preliminary GDP data 15 minutes later, and then finally Crude Oil Inventories numbers at 3:30pm. Concerning the AUD, there will be a release of Private Capital Expenditure data at 2:30am.