Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7750.
· 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.
Short Trade
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch 0.7960.
· 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.
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 this pair was simply not attractive to trade now, because there are no obviously and clear levels now for a long way in either direction. We only had a weak, short-term bullish channel holding up the price. There has been absolutely no change to this technical situation, a weak bullish channelling very far from any key support or resistance. I have no directional bias and think there are likely to be better opportunities in other currency pairs.
Regarding the USD, there will be releases of CPI and Retail Sales data at 1:30pm London time. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate numbers at 2:30am.