Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, during 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 0.7635.
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 entry into the zone between 0.7577 and 0.7561.
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 price would be likely to continue to fall over the short term at least, and that the next supportive area should begin at 0.7577. This is the scenario that has played out, and recent hours have seen the price bottom out right on this level. It looks as if it needs more time to turn, if it is going to turn, so there could be a good long trade if the price turns more decisively bullish at the New York open. Although the Australian Dollar has been relatively weak lately, there is no long-term trend in this pair, so strong reversals at key levels should be interesting in either direction.
Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am..