Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trades
- Long entry following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7231 or 0.7197.
- 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.
- Remove 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 H1H1H1 time frame immediately upon the next touch of 0.7321.
- 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.
- Remove 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 would be bearish if the price can break below 0.7231, which looked very likely to be pivotal today. The level held and as it turned out, the price is a little higher now than it was 24 hours ago, and it spent most of yesterday rising, so this wasn’t a bad call.
There has been little change, it could be said the technical picture is just slightly more bullish than it was yesterday, although there may be a new, lower resistance level at 0.7280 now. I have no directional bias on this pair and everything will probably now depend upon the FOMC release data due later.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm, and the usual press conference half an hour after that.