Yesterday’s signals were not triggered as there was no bullish price action at 0.7298.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7250 or 0.7232.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7382.
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 as long as the support at 0.7298 held, it would make sense to have a bullish bias on this pair, as there are signs of the bullish USD trend ending and the NZD and AUD being well-positioned to rise against the USD. However, I wanted to see a strong bounce there which never happened, and the price continued to fall.
The price chart below shows the price is close to arriving at a confluence of a support level and a long-term bullish trend line, so again, there may be an interesting long opportunity there, and I would again take a bullish bias if there were a strong bounce there.
There is nothing important due today concerning either the AUD or the USD.