Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 0.7343.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7309 or 0.7260.
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.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7418.
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.
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 wrote yesterday that although there were reasons to be bearish, I didn’t feel comfortable taking a bearish bias. The action over the past day has been a little more bearish and the price has moved down, so although I would still be very cautious trading this pair, I am now ready to accept a bearish bias. I would be more bearish if the price could break below 0.7300. There is a resistance level at 0.7362 but I would not feel comfortable entering a short trade there just yet.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.