Yesterday’s signals may have produced a profitable short trade following the bearish engulfing candle rejecting the resistance level identified at 0.7812.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trades
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7696 or 0.7640.
· 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 Trades
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7750 or 0.7812.
· 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
Yesterday I again saw the short-term outlook as unclear, and I had no directional bias. I feel the same way today, although the picture is looking more bearish still with three resistant trend lines and new lower resistance forming again at 0.7812 suppressing the price. Nevertheless, there is reasonably strong support below at 0.7750 and no long-term trend.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, as well as testimony from the Chair of the Federal Reserve before Congress.