Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7629 or 0.7645.
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
I wrote yesterday that 0.7629 would probably be an interesting level, and so it proved to be, with a great pin candle providing an obvious long trade entry. The wider picture is a consolidating triangle with a flat bottom, the borders of which should be watched carefully for clues as to the direction of the next major movement. There is no long-term trend and due to the consolidation situation, I have no bias right now.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time