Yesterday’s signals were not triggered, as the price action at 0.7466 did not see sufficiently bearish price action.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
* Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7454 or 0.7400.
* 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 0.7559.
* 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 I had a bearish bias below 0.7466 and this turned out badly: I was completely wrong. This pair actually rose strongly, not only breaking above 0.7466 but also printing a new higher support level in the same area, at 0.7454. At the time of writing, it looks as if the price is going to advance further, basing off 0.7454. This suggests that if the U.S. CPI data later is weak, this pair will rise relatively strongly, so there might be some strong bullish momentum to exploit on smaller time frames later. However, although I cannot pick an exact level, it is quite possible that the area around 0.7500 will provide resistance to cup such a movement.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.