Yesterday’s signals were not triggered, as neither of the key levels specified were ever reached.
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 only.
Short Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.8069.
- 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 0.7923.
- 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 new resistance level looked unreliable, which is why I did not want to look for a long trade off its rejection, and in fact it did not hold. We are left with no real change to the situation technically, except there is a clearer short-term bullish channel, as drawn in the price chart shown below.
The price continues to creep up in a congested way making this pair unpleasant to trade. The signs are slightly in favour of higher prices, with no key resistance levels before 0.8069.
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, followed by Crude Oil Inventories at 3pm.