Yesterday’s signals were not triggered, as there was no bearish price action at 0.7343.
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 0.7299 or 0.7231.
- 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 0.7382.
- 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 the best approach likely to be to trade strong rejections of key levels. I thought the resistance level at 0.7343 looked particularly strong. I was wrong, there price has continued to edge up and break above the triangle’s upper trend line, albeit very weakly, invalidating the level at 0.7343.
There is a long-term bearish trend, but the U.S. is weak this week, and the chart below shows a pattern of higher lows. It looks as if the movement today will be mildly bullish, but it does not look attractive to trade.
There is nothing important due today concerning either the AUD or the USD.