Yesterday’s signals were not triggered, as there was no bearish price action at 0.7778.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7820.
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
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7750.
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
The price remains established within a medium-term bearish channel, but has found some support at the psychologically important level of 0.7750. There is also a support level above that which the price is sitting on at the time of writing, so it does not look reliable. The resistance level above at 0.7820 which is confluent with the medium-term bearish trend line shown in the chart below looks likely to be the most attractive potential trade set-up. The Australian Dollar is relatively weak, so although the USD is being sold, this might not be the best Forex pair to use to exploit such movements – shorts look likely to be a better bet.
There is nothing significant due today concerning either the AUD or the USD.