Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7558, 0.7575, or 0.7598.
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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7498 or 0.7457.
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 last Thursday that the price was likely to fall further over the short-term, and this proved to be true, but the price has gone on to form a U-shaped double bottom just above the key psychological level of 0.7500 from which it has been rising. Over the past few hours it has been rejecting what looks like a new resistance level at 0.7533, and it looks too late to trade this level, so for key resistance I would look to 0.7556 instead. A period of consolidation between 0.7500 and 0.7533 would not be a surprise, as it looks like being a slow trading day. I have no directional bias on this Forex currency pair.
There is nothing important due today concerning either the AUD or the USD.