Last Thursday’s signals were not triggered as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 5pm Tokyo time only, 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 0.7871.
- 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 Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7778 and 0.7760.
- 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 has continued to fall, but slowly, and the action in this pair is quite dull compared to the more major Forex pairs. I have no bias on this pair, and expect that there will probably be better opportunities elsewhere today, at least until the RBA Rate Statement later which is likely to provide some more volatility. A spike down and bullish reversal off the supportive area below after that release might possibly provide a good long trade opportunity, but watch out for the bearish trend line shown in the chart below.
Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time. Concerning the AUD, there will be a release of the RBA Rate Statement and Cash Rate at 4:30am.