Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7780 or 0.7750.
· 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.
Short Trade
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7898.
· 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.
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 residual momentum suggests that there should be another upwards movement from a bounce at a lower price, making potential long trades at the support levels below look interesting. The level at 0.7750 truly stands out as likely to be strong, as it is an important psychological level as well as a pivotal point. There is no change at all to this technical picture, and the price has not moved much anyway, so it is likely to be worth waiting here and standing aside for the time being. We will probably get some more interesting price movement when the Australian data is released later.
Concerning the AUD, there will be a release of Retail Sales data at 12:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm.