Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7129.
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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7181 or 0.7231.
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.
Take off 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
The Australian and New Zealand Dollars have been the weakest of all major global currencies. Last week this pair reached a multi-year low before recovering to close up over the week. This suggest that trading with a bearish bias is useful, but there is short-term bullish momentum. A bearish reversal later after the RBA’s release at either 0.7181 or 0.7231 look like being very attractive set-ups for short trade entries, and I would take a bearish bias at that time if so.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.