Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, over 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 0.7635.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7577 and 0.7561.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 probably turn from 0.7577, but needed a little time to make the turn. This is exactly the scenario which has played out, and unfortunately Australian news caused a sudden, short-time spike below the low which looked to be anchoring the turn, stopping anyone with a long trade and stop loss just below the low. Following the London open, the price looks as if it is moving up, and there is a steep bearish trend line which can be seen in the chart below which should be the key indicator of bullish momentum – a strong break above this line, and the price should move up to 0.7635. If the bullish break does not come, there will be increasing pressure on the strong long-term zone of support just below the price.
It must be said that there is a long-term bearish trend, but I do not see the price as ready to move down below this support yet. A short following a bearish turn at a higher price with resistance such as 0.7635 would probably be a good trade.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.