Yesterday’s signals were not triggered, as neither of the key levels were reached within the specified time.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7123.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7203.
- 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 although I had no directional bias, there was 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 had a bullish price channel forming with a lower trend line which is holding up the price with a third tap, so there was a chance of a bullish advance from the current price.
This was prescient as the U.S. Dollar started to fall yesterday and the Australian Dollar has been a major gainer, boosted by some very strong Australian Trade Balance data which was released earlier.
The technical position is bullish, with the price breaking up out of its bullish channel, and at present it looks as if it is going to break above the resistance level at 0.7160 also.
We have new higher support at 0.7123.
I will take a bullish bias if the price can remain above 0.7160 after the New York session has been underway for an hour or so.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of Retail Sales data at 1:30am.