Last Thursday’s signals were not triggered, as the bearish price action took place above the resistance level identified at 0.7203.
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 Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.
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 0.7321.
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 I would take a bullish bias if the price could remain above 0.7160 after the New York session had been underway for an hour or so. It did, so this was a great call as the price continued to move even higher over the next hours, reaching a peak just above the psychological level at 0.7250.
The picture now is relatively bullish, as we just had a strong, high, volatile close well above where this price has been ranging for many days. However, this thrust may have run out of steam, but there is still no bearish impulse. I would take a bullish bias today if the price holds at the support level of 0.6165 which is confluent with a trend line. If the bounce were strong, it would be a bullish sign. However, the NZD looks even more bullish than the AUD, so if that persists, looking for a long NZD/USD trade might be a superior plan.
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of the RBA’s Rate Statement at 3:30am.