Yesterday’s signals were not triggered, as there was no bullish price action at 0.7165 or 0.7123.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6992.
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 Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7201 or 0.7247.
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 the day would hinge on whether the resistance at 0.7201 held or broke. I was ready to take a bullish bias here if the price could trade above 0.7200 for a couple of hours. This was a good call as the level held and the price moved down from it by a substantial amount, invalidating both nearby support levels, which were broken.
The price is now rising strongly but there is a huge space with no support of resistance levels between 0.7200 and 0.7000. Anything could happen in this area, so I have no bias today on this pair.
There is nothing important due today concerning either the AUD or the USD.