Today’s AUD/USD Signals
Risk 0.50%.
Trades may only 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 0.7640.
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 0.7720, 0.7735, or 0.7773.
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
The price has fallen heavily over the past few days, printing several obvious new resistance levels, not even one of which has yet been tested. This is a very bearish development and although the past few hours have seen a bullish turn, there is nothing bullish enough here to disrupt the overwhelmingly bearish pattern flow. There may be an opportunity to go short later, if this bullish swing fails in the 0.7720 to 0.7735 area.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of Monetary Policy Meeting Minutes at 12:30am.