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 touch of 0.7695 or 0.7664.
· 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 Trades
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7775 or 0.7804.
· 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 took a bullish bias yesterday, which was a correct approach as the price has risen, although it has fallen off from an area not far from the next key support level during recent hours. The technical picture still looks bullish, and the price may be forming a new higher support level right now as I write at 0.7740. If this area holds until New York opens, the price is likely to continue to rise to test that support, although much will then depend upon the key U.S. data due later. Despite the long-term weak bearish trend in the Australian Dollar, I wouldn’t feel very confident about going short above 0.7660.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and the FOMC Meeting Minutes at 7pm.