Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7362 or 0.7309.
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 Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7418.
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 the bullish thrust may continue for a little while longer, and the price would then probably settle within a recently congested area, so the opportunity here may have passed already. I thought we would see only slightly higher prices over the next day. I was wrong, as the price did continue upwards after initially settling, but I was partially right as the resistance held and the piece has returned to the area it was in yesterday. This bearish move looks quite strong and I would not be surprised to now see the price fall all the way to at least 0.7362. I have a bearish bias above 0.7362, but the price probably won’t be active until Tokyo comes online.
There is nothing important due today concerning either the AUD or the USD. It is a public holiday in the United States.