Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.7413.
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 0.7389 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
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7479.
- 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 this pair was still a mess, just as it has been all week. I had no directional bias and thought that it was probably best to avoid trading this pair for the time being. Again, for another, this situation is unchanged. I have no directional bias here and I wouldn’t trade this currency pair now.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm. Concerning the AUD, there will be a release of Trade Balance data at 2:30am.