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 Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7640 and 0.7629.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7718.
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 bearish bias yesterday, on the logic that the price looked as if it would fall further, and due to the fact there is a long-term bearish trend. The price has risen, so I was partially wrong, but has been held by the resistance level at 0.7718, making a high just one pip below it. There is still buying at the minor support levels which can be seen if you drill down, but I maintain a bearish bias, as it still looks as if the next major move will be downwards. Of course, the key U.S. data due later could push the price anywhere. A sustained break above 0.7774 would decisively change the technical picture.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 3:30pm. Concerning the AUD, there will be a release of Trade Balance data at 2:30am.