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 only.
Any open trade should be closed by 6:30pm London time and no new trade opened from then until 8pm London time.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7577 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
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7545 or 0.7498.
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
Nothing dramatic happened yesterday, in fact the nearest support and resistance levels I identified yesterday to the price both held, with the prince just bouncing between them. The broken bullish trend line has also provided resistance as it is tested from the other side. Although we might have seen a major long-term bullish turn at 0.7500 below, the short-term outlook looks likely to be consolidative. In any case, there is a major FOMC release due later today which could push the price anywhere and is highly unpredictable. I have no directional bias.
Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm, and FOMC economic projections, Statement, and the Federal Funds Rate at 7pm. Finally, the FOMC Press Conference will begin half an hour later. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am.