Yesterday’s signals were not triggered, as there was no bullish price action at 0.7231.
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 0.7197.
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 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.
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
I wrote yesterday that I had no directional bias on this pair and everything would probably now depend upon the FOMC release data due later. The release initially spiked the price up before making the Dollar strengthen considerably over recent hours, so we have seen a reasonably strong downwards movement and the invalidation of the former resistance level at 0.7231. I have been expecting this pair to move down at least a little over this week, due to last week’s strong counter-trend movement, and this seems to be playing out now. A sustained break below 0.7200 would be a very bearish sign, but this will probably only happen if the U.S. GDP data due later is very strong.
Regarding the USD, there will be releases of Core Durable Goods Orders and Final GDP data at 1:30pm London time. There is nothing due today concerning the AUD.