Yesterday’s signals were not triggered, as the price did not reach any of the key levels within the specified time.
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 1H1 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 it looked as if the movement today would be mildly bullish, but it did not look attractive to trade. I was wrong about the overall move over the day, which has turned notably bearish.
The technical picture shown in the price chart below is one of a wide swinging consolidating triangle, within a long-term bearish trend. The price is currently sitting on strong support at 0.7300 which is looking increasingly likely to break down – but the action here needs to be watched carefully. If the price does fall further, the support level at 0.7256 is looking very attractive, due to a confluence of a major psychological level at 0.7250, horizontal support at 0.7256, and a medium-term bullish trend line. A long trade from a healthy bullish reversal there might be a great trade.
I have no directional bias today. If the level at 0.7300 holds for several hours and the price starts to advance, the outlook would become weakly bullish.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time followed by Crude Oil Inventories at 3:30pm. Concerning the AUD, there will be a release of Private Capital Expenditure data at 2:30am.