Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during 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 0.6992.
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 0.7105 or 0.7160.
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 hard to see any key levels within a very wide, almost 200 pip range, except for 0.7105 which was holding the price down, but also looked very likely to break and become invalidated soon. For this reason, I did not want to use it as a level, but if the price stalled and fell from that level it might have given a short trade opportunity.
The previous day’s price action did not play out in a way where this opportunity could have been relevant, but the price is now close again to the resistance at 0.7105 which is also confluent with a new bearish trend line, so I think yesterday’s approach will again be relevant today. I would be bearish following a strong rejection of 0.7105. If the price can get established above 0.7105 and the trend line shown in the price chart below, the would conversely be a bullish sign. The bearish scenario is looking considerably more likely.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the AUD, there will be a release of CPI data at 1:30am.