Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7389.
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 have been saying for days now that this pair is an aimless mess and traders should forget all about it. It is even more true today, although we do see an obviously pivotal level at 0.7389 which seems to have just flipped from bullish to bearish, producing a slightly more bearish picture. Nevertheless, just take a look at the more zoomed-out price chart I have generated shown below. The action is an absolute disaster, it is choppy and going nowhere, so I still see this pair as best avoided. I have no directional bias. You might scalp a few short pips off a return to 0.7389 but that is about it.
Concerning the AUD, there will be a release of Retail Sales data at 2:30am London time. There is nothing important due today regarding the USD.