Yesterday’s signals were not triggered, as there was no bullish price action at 0.7498.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trade
Long entry following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7466.
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 Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7559 or 0.7592.
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 the AUD remained weak, but a bullish bounce at 0.7500 would still look like a very interesting possible high reward to risk trade set-up if it happened. There was no bounce there, but the price has made a minor double bottom at 0.7480. Unfortunately, it is not convincing, and the picture remains bearish below 0.7559, even though it looks as if 0.7500 was used as minor support a few hours ago. I do not feel able to make a call on the price movement today. There are major data releases scheduled later for both currencies which means the price might go anywhere, so it is probably better to stand aside for the time being.
Regarding the USD, there will be a release the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Crude Oil Inventories at 3pm and the FOMC Statement and Federal Funds Rate at 7pm. Concerning the AUD, there will be a release of Trade Balance data at 2:30am.