Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7740 and 0.7729, or next touch of 0.7598.
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 0.7702.
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 wrote that I had no directional bias today, and saw this pair as best avoided for now. I was wrong, the bears won over the short term and pushed the price down in a smooth wave, forming a new lower resistance level very confluent with a round number at 0.7202. This changes the technical picture which has become more bearish. However, the price is approaching a small but significant zone of support, shown by the blue lines in the price chart below, and there are further support levels not far below that zone. I am bearish today until the price reaches 0.7750, where it might turn bullish a little early.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.