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 to 5pm Tokyo time, over 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 0.7129.
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 the action still looked slightly bearish, or at least the Australian Dollar looked very weak, but a move up looked only very slightly less possible over the short-term than a move down. The price has just gone sideways over the last 24 hours, and the only change to the technical situation is the more obvious new resistance level at 0.7093. If we get a strong bearish reversal there later today, I would be prepared to take a bearish bias, as the price has a considerable way to fall before it would meet any obvious support, and there is clearly a long-term bearish trend in force.
There is nothing important due today concerning either the AUD or the USD.