Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trade
Go long following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7498.
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 Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7591.
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 wrote last Thursday that I saw price action as flattening out as we get closer to the psychologically important level of 0.7500, and the price has continued to flatten. The support at 0.7544 is basically holding. I do not have a lot of faith that 0.7544 will continue to hold, it is the level below at about 0.7500 which looks like a very interesting potential long-term bullish trade set up – potentially.
There is no change to the technical picture and it is difficult to predict which way the price will move over the short-term. We might get more clarity after the RBA release due later during the forthcoming Asian session.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA Rate Statement at 5:30am London time.