Yesterday’s signals were not triggered, as there was no bullish price action at 0.7362, and the price unfortunately did not quite reach the support level at 0.7309.
Today’s AUD/USD Signals
Risk 0.75%.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7362 or 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
- Go short following some bearish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7418.
- 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 wrote yesterday that there was major news for both currencies later which could push the price anywhere, but generally I would take a bearish bias below 0.7362. The price quickly broke below that level and fell quite far, close to the lower support, before turning around and rising extremely strongly upon the RBA’s release some hours ago. It looks as if this thrust may continue for a little while longer, and the price will then probably settle within a recently congested area, so the opportunity here may have passed already. I think we will see only slightly higher prices over the next day.
Concerning the AUD, there will be a release of Retail Sales and Trade Balance data at 2:30am London time. There is nothing important due today regarding the USD.