By: DailyForex.com
Yesterday’s signals were not triggered, as there was no bullish price action at 0.7466.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trade
* Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7400 or 0.7375.
* 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 0.7466 or 0.7559.
* 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 yesterday that if 0.7466 broke down soon, it would be a bearish sign. The level did break very quickly, before the New York open, and the price fell as low as 0.7411 before rebounding strongly over the past few hours. I will stay bearish below 0.7466 and if this move turns bearish again, we are likely to see a retest of the low prices. Below that there is key support at a round number of 0.7400 which could be interesting for a long trade if there is a strong bullish reversal there.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.