Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7696 or 0.7750.
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 entry into the zone between 0.7640 and 0.7629, or the next touch of 0.7598.
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 was right to see short-term bullishness last Thursday. I mentioned that a pullback and bullish bounce at 0.7629 could be an attractive long trade, but I was a little wrong with the support which in fact came in a little higher at 0.7640. The pair is holding up well and it still looks reasonably bullish. However, it could be over-extended after last week’s strong bullish move, so it would not be surprising if the resistance near 0.7700 or even 0.7750 caps the high of a down week this week. The RBA’s minutes release due later will probably set the tone for the AUD this week, the rest will be up to what happens with the USD.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 12:30am London time.