Yesterday’s signals were not triggered as there was no bullish price action at 0.7540.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7478.
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 0.7589.
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 there were some reasons to be bullish, but the longer-term action was not strongly directional. As it happened, there was a break below the support, which has now flipped to become new lower resistance, which is a bearish sign. However, I think this pair generally has inconclusive action and is hard to trade right now. It is probably going to be better to stand aside today, unless the price falls very rapidly to the nearby support levels and then turns bullish.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the AUD, there will be a release of Wage Price Index data at 2:30am.