Yesterday’s signals were not triggered, as there was no bullish price action at 0.7494.
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 0.7494.
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 0.7543 or either of the trend lines above that which are shown within the price chart below.
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 expected that the the price was likely to remain below 0.7527 for a few hours at least, and I was right about that. Unfortunately, I had a low support level which I did not include in the signals which acted as excellent support several hours ago, with the Australian Dollar rebounding strongly in recent hours as the market returns to “risk-on” sentiment. However, beyond short-term momentum and reversals, it is hard to make any good calls here, as there is not really any long-term trend or clues from the higher time frames. I have no directional bias beyond thinking that a good bearish reversal might give an opportunity if either of the trend lines are retested.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time. Concerning the AUD, there will be a release of Private Capital Expenditure data at 2:30am.