Yesterday’s signals produced a losing long trade from the bullish outside candle on the H1 chart rejecting the support level identified at 0.8022.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 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 0.8058.
- 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 0.7922.
- 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 bullish trend was strengthening slightly. However, this pair has developed in a more bearish way, breaking below the supportive trend lines and the key horizontal support level at 0.8022. We can also identify new, lower support at 0.8058. Overall, this pair is difficult to trade, as it is not behaving technically and does not look like it is going to respect key levels. I have no bias and see better opportunities elsewhere in other currency pairs.
There is nothing due today concerning either the AUD or the USD.