Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am 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 0.6992.
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 0.7129.
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 there was every reason to remain bearish on this pair as the USD was still advancing very strongly here on the short-term time frames. This price was at a 2.5-year low and looked set to continue down to the psychologically important 0.7000 level where the fall might halt. The price has continued to fall gently so it was slightly correct to be bearish, but the price has not yet reached the key psychological level at 0.7000. It still looks slightly bearish, or at least the Australian Dollar looks very weak, but a move up looks only very slightly less possible over the short-term than a move down.
There is nothing important due today concerning either the AUD or the USD. It is a public holiday in the U.S.A. today.