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 only.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line shown in the chart below currently sitting at about 0.7585, or 0.7609.
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 touch of 0.7517 or 0.7500.
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
This pair has to be said to be in a long-term bearish trend now. It falls steadily with a good trend, albeit with pretty deep pull backs. The chart below shows a bearish situation, with the price currently looking as if it is turning bearish right now and giving a potential low-risk entry on a short trade with the rejection of the nearest resistance level at 0.7572. There is a dominant trend line only a few pips above that resistance level, which also would be a great place to enter if the price gets there today and makes a bearish turn, rejecting the trend line.
If the price continues to fall, it has some interesting support levels close to 0.7500 and right at 0.7500, which is a very important psychological number and so it is more likely that other support levels to produce a long-term reversal.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 12:30am London time.