Last Thursday’s signals were not triggered, as neither 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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7386 or 0.7348.
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 0.7438.
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 have been saying for some time now that this pair is an aimless mess and traders should forget all about it. However, the technical picture has become significantly more orderly and maybe more predictable also. There is a very obvious pivotal level, currently acting as support, at 0.7386, and a medium to short-term bearish price channel, both of which can be seen highlighted in the price chart below. I take a cautiously bullish bias above 0.7386 but would seek to exit any trade as the price gets close to the upper trend line of the price channel, although I would not look to open a short trade there but would wait instead for a potential bearish reversal at 0.7438.
Concerning the AUD, there will be a release of the RBA Rate Statement at 5:30am London time. There is nothing important due today regarding the USD.