Yesterday’s signals produced a profitable short trade from the bearish inside candlestick which rejected the resistance level at 0.7129. This is still in profit and may well be worth letting run to see if it moves further.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 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 0.6992.
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 H1 time frame immediately upon the next touch of 0.7129.
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 was looking to the new resistance level at 0.7093. As it turned out, this wasn’t the great pivotal level of the past 24 hours: that instead fell to 0.7129, which I had marked as the next resistance level. This has worked really well as resistance and we are seeing a strong fall after the price reversed there right at the end of the Tokyo session. The price is currently invalidating what seemed to be a likely area of support at 0.7090 or so. If the price continues to move down here, it could go all the way to at least 0.7050, so it is worth watching what happens at the current price area carefully. The long-term bearish trend could help bears a great deal here.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.