Last Thursday’s signals were not triggered, as the price never quite reached the support level identified at 0.7197 that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 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 0.7129.
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 0.7207.
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 last Thursday that I was expecting this pair to close the week down from its open, but I saw 0.7200 as quite likely to hold unless there was a surprise in the U.S. Final GDP data. There was no such surprise so 0.7200 held as expected. However. this level has now broken very strongly in recent hours as there a strong and fast money flow into safe haven assets such as the U.S. Dollar. I think that with such very strong momentum, the price is likely to reach at least 0.7150 later today and possibly even all the way to 0.7129.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing important due today concerning the AUD.