Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry 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
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7556.
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 important Australian data due later might push the price in a strong direction. This is what happened, with a hawkish RBA pushing up the value of the AUD. The price broke above the resistance although it is now finding it difficult to rise any higher. It might be that the broken trend line and horizontal level at 0.7637 hold up, which would be a very bullish sign. Alternatively, the price will drop below that and give up some of the gains. I suspect there will not be any great opportunities today although if the GDP data is strong that will probably push the price to new highs.
Regarding the AUD, there will be a release of GDP data at 12:30am London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.