Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.7089.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trade
- Go long following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6992.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7160.
- 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 be bearish if the level at 0.7089 held as resistance over the coming hours into the New York session. This level did hold, and produced a small downwards movement twice, but was eventually broken and invalidated, so it did not work well.
The chart below is more zoomed-out than usual, because the price of this pair has not really moved much over the past couple of weeks, and we now have no potentially useful support or resistance levels anywhere nearby. For these reasons, I think this pair is probably best avoided now, and I have no directional bias at all.
There is nothing important due today concerning either the AUD or the USD.