Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.7479.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during 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 0.7418 or 0.7402.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7453 or 0.7479.
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.
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 expected the price to go higher and break above the resistance level at 0.7479, but I was wrong, as the price spent several hours struggling to get above it, before eventually forming a double top and falling with increasing momentum in recent hours. The former support has now been flipped to resistance at 0.7453. However, the price may already be being held up by an area of minor support around 0.7440. There is no news due today for either currency, and the direction looks too close to call. Additionally, the price action is starting to look very uncertain. For these reasons, I have no directional bias on this pair now.
There is nothing important due today regarding either the AUD or the USD.