Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Short Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7594.
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 touch of 0.7575 or 0.7558.
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
Yesterday the price broke a little way past the nearest resistance level, but was unable to rise and then gradually sold off in a falling pattern. The area just below 0.7600 is now being used as passive selling. However, there are a couple of support levels which are not far away from the current price.
I have no directional bias on this currency pair. It looks like this pair will be difficult to trade for any significant gains, so I think there are going to be better opportunities today in other Forex currency pairs, at least until the slew of data releases due later which might produce a clearer technical picture.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm. Concerning the AUD, there will be a release of Private Capital Expenditure data at 12:30am.