Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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 0.7389.
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 0.7429.
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 last Thursday that there was a very wide range between 0.7479 and 0.7309 within which the price might do anything. There is volatility, but unless you are a very skilled scalper or day trader looking for short-term momentum, this pair is best avoided for now. This was a good call and this pair is still a mess. Support and resistance levels look very unreliable and there is no obvious sign of anything else happening beyond a choppy ranging action centred upon the 0.7400 area. This pair looks very unpredictable and directionless and is still probably best avoided. I have no directional bias today.
There is nothing important due today concerning either the AUD or the USD.