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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7635 or 0.7696.
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
Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7594 and 0.7587.
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
In my previous analysis last Thursday, I noted that the price action had turned bullish over the short-term, but thought it most likely that the bears would take back control at 0.7635. This is exactly what happened, but the bears did not take control strongly: the price bounced just below 0.7600 and it has been moving up very strongly over the past few hours. There is a breach of a significant medium-term bearish trend line shown in the chart below, and another test of 0.7635 looks likely to happen soon.
Another short trade could become possible if there is a convincing failure at 0.7635 again. Beyond that, I doubt there will be any other potential opportunities arising during the next 24 hours.
I have no directional bias on this currency pair.
There is nothing important due today concerning either the AUD or the USD.