Yesterday’s signals were not triggered, as there was no bullish price action at 0.7133.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Wednesday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7085 or 0.7054.
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 0.7118 or 0.7133.
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 due to the lack of any real trend, I would take no directional bias unless the RBA release later was seen as more bullish than expected. Just the opposite happened, with the RBA Minutes including wording which pointed to “significant uncertainties” in the Australian economic outlook, which caused the AUD to fall a little further against a resurgent U.S. Dollar. This created a new lower resistance level at 0.7118 but we are also seeing a possible beginning of higher support at 0.7108 so overall it is an extremely evenly balanced picture between the bulls and bears with no real trend.
Overall, this pair is clearly best avoided today, although it may be possible to fade a sudden spike to 0.7085.
Regarding the AUD, there will be a release of Wage Price Index data at 12:30am London time. There is nothing of high importance due today regarding the USD.