Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 0.7362.
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 stepped aside from this pair yesterday, which turned out to be a good call. We had the RBA’s meeting minutes a few hours, which had the effect of pushing the price higher over the short term, but not by much, and the price is already selling off from its highs. There is no change to the big picture here, which is that this pair is trading within a wide range, which has tended to give both long and short opportunities to those with patience who are prepared to fade bounces at the extreme price levels. I have no directional bias here today.
There is nothing important due today concerning the AUD. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.