Yesterday’s signals produced a losing long trade from the bullish doji hourly candlestick which rejected the support level identified at 0.7118.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7103.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7203.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 it was looking increasingly unlikely that the price could get established above 0.7150, despite the medium-term bullish price structure which was clearly in place. This was a good call as the price pulled back from 0.7150 and has yet to overcome this area which is acting as a hurdle for any further meaningful advance.
I would be bullish today above 0.7160 as the medium-term picture still looks broadly bullish above 0.7103 and we have no reliable long-term trend which trumps this as an indicator of directional edge.
There is nothing important due today concerning either the AUD or the USD.