Yesterday’s signals were not triggered, as there was no bearish price action at 0.7105.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over 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 0.6992.
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 0.7160.
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 I would be bearish following a strong rejection of 0.7105 but also that if the price could get established above 0.7105 and the trend line, that would conversely be a bullish sign. The bearish scenario is looking considerably more likely.
The price did spend three hours above 0.7105 and the trend line, but fell back quickly, and the level has now been invalidated.
We are left with no clear support or resistance levels anywhere near the current price, making trading this pair very difficult, so I have no bias today.
There is a case to be made for a bullish approach, as the Australian Dollar was one of the very few currencies which advanced against the U.S. Dollar yesterday. We also have a bullish price channel forming with a lower trend line which is holding up the price with a third tap, so there is a chance of a bullish advance from the current price.
There is nothing important due today concerning either the AUD or the USD.