Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
Go long following some 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
Go short 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 had no bias last Thursday. As it happened, there was a nice short trade possible later that day during the Asian session, with a bearish reversal at the nearest resistance level of 0.7559. It looks less and less likely that we are going to see a major bullish reversal in this psychologically key area of 0.7500. At the time of writing, the action is looking bearish, suggesting lower prices are going to happen today following the selling at the “shoulder” of 0.7540. If so, it will be interesting to see what will happen as the price approached the nearest support at 0.7466. The Australian data due later might have an impact. I have a mildly bearish bias, at least until the Australian data release.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of Retail Sales data at 2:30am London time.