Yesterday’s signals produced a short trade following a bearish engulfing candlestick which rejected the resistance level at 0.7150, giving a little more than the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time today only.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7100, 0.7075, or 0.7039.
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 0.7150, 0.7201, 0.7247.
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 bullish movement in the Australian Dollar was very strong and significant. I saw the bullish momentum as declining and identified 0.7150 as the day’s pivotal level, both of which were accurate calls.
The situation is broadly bullish still, but if the price cannot exceed 0.7150 today or tomorrow then we will be increasingly likely to see a deeper bearish retracement.
I would take a bullish bias on this pair today if the price can trade above 0.7150 for a couple of hours.
There is nothing of high importance due today concerning either the AUD or the USD.