Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7553.
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.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7621 or 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 Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7654.
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
Last Thursday I had a bullish bias above 0.7553. The level held for a while then broke down, producing a further fall. It was not effective in providing an entry, but it was effective as a pivotal point that day. The picture was already becoming more bullish last week, but it has become even more strongly so since this week opened some hours ago, due partially to stronger than expected Australian Retail Sales data. The price has really taken off and is up by more than 1% already since the open. The rise has been very strong and there is a lot more room to rise above the next resistance level at 0.7654.
It makes sense to be bullish on this pair today, but there is more major data concerning the Aussie due in the forthcoming Asian session which could move the price substantially and unpredictably.
Concerning the AUD, there will be a release of the RBA Rate Statement and Cash Rate at 5:30am London time. There is nothing due today concerning the USD.