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 from 8am New York time until 5pm Tokyo time today only.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7147.
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 Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247 or 0.7275.
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 the AUD was suffering from a deterioration in risk sentiment, and that a medium-term test would be if the support at 0.7147 remained intact if or when it was tested again. I was ready to be bullish if we got a firm bounce at 0.7147. As it happened, the price has not really gone anywhere, and is essentially consolidating roughly equidistant from support and resistance levels, so it is hard to see what might happen next. I expected that the price would rise this week, so I am generally happier to be bullish than bearish, but I don’t see a good trade entry here as likely to happen today. Arguably the NZD/USD currency pair looks more interesting to trade.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.