Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 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 0.7540.
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 0.7589.
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 it looked as if the price was going to advance further, basing off 0.7454. I was correct. The price has also managed to break up above 0.7500 and a medium-term bearish trend line, invalidating the former resistance level at 0.7559. It now looks as if there is new support at 0.7540. This picture suggests there are some reasons to be bullish, but the longer-term action is not strongly directional, so I think this pair will not do much today. The longer the support at 0.7540 holds, the greater the chance of a break above 0.7589, which would be a very bullish sign.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.