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 taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long entry following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7545 or 0.7500.
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
I wrote yesterday that still lower prices looked likely, and this is what we have seen (at least to some extent) over the past 24 hours. However, it now looks as if action is flattening out as we get closer to the psychologically important 0.7500 area which, as I noted yesterday, might produce a medium-term or long-term price reversal, so could be an interesting place to look for a bullish reversal. I have no directional bias as I think either of the next two lower support levels are likely to hold for several days if reached, but further downwards movement to some extent is equally possible.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.