Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 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 0.7559.
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 0.7641.
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 expected to see higher prices, but I was completely wrong, and the price fell quite heavily before it recovered on Friday. The long-term charts suggest that the price has made what could be a long-term bottom at about 0.7500 in a U-shape, which suggests higher prices. The price is currently sitting on a higher support level which seems bullish, but I think the price is just going to move sideways today so I have no directional bias. I do not have much faith in this nearby support level of 0.7603 and think it is quite likely to break down.
There is nothing due today concerning either the AUD or the USD.