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 0.7938 or 0.7901.
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 0.8000.
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
There is a generally medium-term bullish picture. Although the price broke up past the former resistance level close to 0.8000, it was unable to clear this psychologically huge major round number. There is a new obvious support level at 0.7983 which is holding the price up. The picture still looks bullish, but it is the level at 0.8000 which is going to be key. If it exceeded in a sustained way, it will be an extremely bullish sign. If there is a failure at or below 0.8000, it will suggest a medium-term downwards movement is most likely to come next. There is no long-term trend and I have no directional bias once the price gets close to 0.8000 again (although I am bullish in the meantime)
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There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am London time.