Yesterday’s signals were not triggered, as the price was already below the support level at 0.7621 by the time New York opened.
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 0.7603.
* 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 0.7719 or 0.7740.
* 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 would be bullish if the price could bounce convincingly at 0.7621. I thought it would be a bearish sign if the price broke below that level. I was proven wrong when the price bounced strongly at 0.7600 and then went on to reach new highs above the previous swing high. The technical picture is considerably more bullish now, so I have a bullish bias on this pair today which is enhanced by the fact that we are seeing very noticeable relative strength in both the Australian and New Zealand Dollars right now, which tells us that this pair seems to be a “hot hand” against any further declines in the U.S. Dollar over the short term.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the AUD, there will be a release of Trade Balance data later at 2:30am.