Yesterday’s signals were not triggered, as unfortunately the price never quite reached the resistance level at 0.7207.
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 0.7129.
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 yesterday that with such very strong (bearish) momentum, the price was likely to reach at least 0.7150 later that day and possibly even get all the way to 0.7129. I was wrong about the timing but right about the bearish momentum, as we see the resistant area around 0.7200 hold and the price fall strongly again with good bearish momentum over recent hours. The outlook is bearish on all time frames and the Australian and New Zealand Dollars are easily the weakest currencies right now, so I have a bearish bias on this pair today below 0.7175 and above 0.7129.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm. The Chair of the Federal Reserve will be giving a minor speech at 9pm. There is nothing important due today concerning the AUD.