Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time to 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 0.7695 or 0.7664.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7775.
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 had no bias yesterday, as I saw the price as trapped between two levels and just as likely to break out anywhere. Yesterday we had an initial false break short, and then a real breakout long, and the price has continued to advance, so now we have more clarity as to direction. I take a bullish bias today. There may also be support at 0.7710 as well as 0.7695.
Regarding the USD, there will be a release of PPI data at 1:30pm London time. Concerning the AUD, the Governor of the RBA will be making a minor speech at 6am.