Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.7654.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered from 8am New York time until 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 0.7621 or 0.7559.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7719 or 0.7740.
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 wrote yesterday that it made sense to be bullish on this pair, but there was more major data concerning the Aussie due in the forthcoming Asian session which could move the price substantially and unpredictably. The price did continue to rise a little higher but quickly ran out of steam and started to pull back gently. Since then nothing has happened of note and the reaction to the Australian central bank data earlier was very slight as there were no items of surprise. The picture remains bullish, but if the price easily breaks below 0.7621 that would be a bearish sign. I would be bullish if the price can bounce convincingly at 0.7621.
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of GDP data later at 2:30am.