Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7840 or 0.7790.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7935.
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 last Thursday that the price was likely to range between 0.7839 and 0.7785. The price did spend most of the day between these two levels, but during the later part of the day it was rising strongly within this area, not ranging. The picture now looks considerably more bullish, with new support established at a recent swing high around 0.7840, although the price has already made a swing high close to a recent peak at 0.7880 which may hold for a while. We have also seen the final break of the last bearish trend line. I have a bullish bias on this pair now.
There is nothing due today concerning either the AUD or the USD.