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 entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trade
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165.
- 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 0.7303.
- 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 this pair looked terrible to trade right now, action was a little choppy, very uncertain, and equally far from any key support or resistance levels, of which there were very few. I said I’d avoid trading this pair and I had no directional bias at all. There is little reason to change this analysis, although you could argue that there is a bearish price channel (which I have drawn in the chart below), but it looks very shaky and I have no confidence in it. It is probably best to avoid trading this pair today.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.
Concerning the AUD, there will be a release of Private Capital Expenditure data at 12:30am.