Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7145 or 0.7108.
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 0.7231 or 0.7270.
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 would happily be bearish at any return to the resistance level at 0.7231 followed by a rejection and bearish price action. If the price goes on to get established below the support level at 0.7145, this would be a very bearish sign, as the price would be making a new multi-year low.
Neither of these scenarios played out, and we see instead the price firming up above the support level of 0.7145, which is a long-term multi-year low. This means despite the long-term bearish trend, it may be the start of a major long-term bullish reversal, yet the odds are against that due to the bearish momentum.
I maintain my analysis from yesterday, outlined in the first paragraph above, but I am a little less confident of a bearish reversal at 0.7231 today than I was yesterday.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.