Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7594.
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 0.7556.
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
Two of the three key support / resistance levels I identified in yesterday’s forecast framed the high and low of yesterday, but the levels were hard to trade as they were either not quite reached or slippery. It looks as if the support at 0.7556 is going to be hit, which might provide a trade opportunity, but the short-term feel is definitely bearish. There is no long-term trend in this pair and the action is messy, so it is probably a good idea to look for opportunities elsewhere.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.