Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7103.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken 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 0.7089.
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 0.7203.
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 last Thursday that I would be bullish above 0.7160 as the medium-term picture still looked broadly bullish above 0.7103 and we had no reliable long-term trend which could trump this as an indicator of directional edge. This wasn’t a bad call as the area at 0.7160 has certainly been pivotal and the price has kept falling back every time the price got close to it.
There is little change to the technical picture, the price has been consolidating and there is a key, well-defined support level at 0.7089 which is likely to be a pivotal level for today. If it breaks down, the price is likely to fall further; if it holds, we could get another 50 pip rise in price.
There is nothing important due today concerning either the AUD or the USD.