Yesterday’s signals were not triggered, as unfortunately the bearish rejection of 0.7702 did not finalize until after 5pm Tokyo time. The zone does seem to be holding as good resistance.
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 entry into the zone between 0.7640 and 0.7629.
· 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 run.
Short Trade
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7718.
· 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
I took a bearish bias yesterday, saying that a short from the resistance looks as if it could be a good trade. This has worked out well, with the price falling from the resistant area just above the round number at 0.7700 over the past few hours. It currently looks as if it will fall further. There is a long-term bearish trend in this currency pair, so I am comfortable maintaining my bearish bias, especially now that the RBA has left the Australian cash rate unchanged at 1.50%, 0.25% less than the comparable USD rate.
There is nothing due today concerning the USD. Concerning the AUD, there will be a release of Retail Sales data at 2:30am London time.