Yesterday’s signals were not triggered, as there was no bullish price action at 0.7322 or 0.7299.
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.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7248.
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 ride.
Short Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7299 or 0.7322.
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 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 I did not feel confident calling short-term direction, but a long trade at a bullish bounce at 0.7322 would look attractive. As it happened, the price has fallen quite strongly, partly due to a stronger U.S. Dollar following yesterday’s FOMC release, and partly due to the weakness of the Australian Dollar due to the political crisis over Australia’s political leadership which is ongoing. This crisis is a developing story and may impact the Australian Dollar at unpredictable times and in an unpredictable direction.
If the price continues to fail to rise above 0.7300 as we head into the New York open, I would be comfortable taking a bearish bias today.
There is nothing important due today concerning either the AUD or the USD.