Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trade
Go long following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7466.
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 Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7559 or 0.7592.
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 I had a bearish bias below 0.7559, even though it looks as if 0.7500 was used as minor support. I also thought it was probably better to stand aside for the time being. My second point was just as well, as the price has in fact risen and seems to be carving out a bottom just below the 0.7500 area, which might indicate the start of a long or medium-term bullish reversal. However, the price has been stuck for a few hours at the new lower resistance level of 0.7525. There is a little momentum against the U.S. Dollar today due to the slightly dovish FOMC release late yesterday, so if the price is unable to break above 0.7525, that would be a bearish sign. I have no directional bias on this pair today.
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of the RBA Monetary Policy Statement at 2:30am.