Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 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 0.7527.
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 0.7621.
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 I had no directional bias as I saw continuing ranging behaviour as the most likely short-term scenario. This was a good call. We have seen the price range and consolidate within a new narrowing triangle, drawn by the trend lines shown in the price chart below. Even though we are awaiting a strong third touch on either side, which is typically good for trade entries, I would wait until one of the key levels above or below the triangle is hit before looking for a trade entry. There are likely to be better opportunities over the short-term in the European currency pairs. I have no directional bias on this pair.
There is nothing due today concerning either the AUD or the USD. It is a public holiday in the U.S.A.