Yesterday’s signals produced losing trades from bullish price action at both 0.7573 and 0.7544.
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
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7494 or 0.7479.
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 0.7573.
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 the long-term picture was still choppy, so I preferred not to trade this pair. This was the correct call, as the price has turned bearish again, giving false signals as the bears briefly struggled at two support levels before successfully breaking them down. There is no significant change to the technical picture, the action is still ranging and unpredictable, with the Australian Dollar roughly as strong as the U.S. Dollar. I have no directional bias but right now the bears seem to have an upper hand.
Concerning the AUD, the Governor of the RBA will be giving a minor speech at 9am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm, followed by the FOMC Meeting Minutes at 7pm.