Yesterday’s signals were not triggered, as there was no bullish price action at 0.7362.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7309.
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.
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 Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7403.
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 had no bias yesterday as I saw this pair as ranging within a wide range. However, the strengthening of the U.S. Dollar has seen the bottom of that range broken, at least temporarily, with the move below 0.7362, suggesting the pair is moving into a more bearish scenario. If the price now fails to retrace back below 0.7375, it will be likely to fall again towards 0.7309, so I would might take a bearish bias a few hours later.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate data at 2:30am