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 Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7635 or 0.7696.
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
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7574 or 0.7558.
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 thought yesterday that the price would be most likely to continue down towards the 0.7500 area, but I warned the data releases due later could push the price anywhere, and so it proved to be, with the price turning bullish and breaking up past resistance. The move also broke some relatively short-term bearish trend lines, and has established new support levels. So, the price is moving against the long-term bearish trend, but there is no reason yet to see this as a major trend reversal. For this reason, I think the bears will take back control, and this is most likely to happen at the confluence of a major bearish trend line and horizontal resistance at 0.7635. Although I have marked 0.7608 as new support, I do not have a lot of faith in it, and think it could break down easily. The level at 0.7574 looks like it will be more significant if reached.
I have no directional bias on this currency pair.
There is nothing important due today concerning the AUD or the USD. It is a public holiday in the USA today.