Today’s AUD/USD Signals
Risk 0.75%.
Trades may be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 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 1
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7629.
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 wrote yesterday that the best trade would be likely to be a short from the 0.7700 area. This is exactly what happened, with a very clear bearish turn taking place. This bearish leg may be almost over, as the price is almost at an area which has acted as a convincing floor for almost two weeks. The double bottom starts at 0.7640, and this might hold if it is reached, but a much more interesting level will be 0.7629 if it is reached. There is no long-term trend, but there is certainly a medium-term bearish trend in this pair.
There is nothing important due today concerning either the AUD or the USD.