Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7256 or 0.7231.
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 run.
Short Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7321.
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 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 wrote yesterday that I had 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.
The level at 0.7300 did not hold.
The picture now is slightly more bearish, with no support at 0.7300 and new lower resistance at 0.7321. There is short-term bearish momentum, but the area at 0.7256 still looks attractive if there is a bullish reversal there due to the confluence with the bullish trend line and the psychological level 0.7250. Overall, the dominant feature is the large consolidating triangle, which hasn’t changed.
I would take a bullish bias later if there is a strong bullish reversal at 0.7256.
There is nothing important due today concerning either the AUD or the USD.