Today’s AUD/USD Signals
Risk 0.50%.
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 0.7453 or 0.7418.
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 0.7510.
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 I had a slightly bullish bias, and this worked out well, even better over the course of the past few days than over that one day, with the price making a strongly bullish move. We are now in sight of the psychologically important 0.7500 area. This pair is usually sensitive to global risk appetite, and the improvement there as stock markets have been rising has been reflected in a strong AUD, while the USD seems to be starting to make a relatively significant bearish movement. The price is currently sitting just under the resistance level of 0.7479, but it looks quite likely to go higher, so I would only look for a bearish reversal at the next resistance level just above 0.7500. I have a very weak bullish bias on this pair today.
There is nothing important due today regarding the AUD or the USD.