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 taken from 8am New York time until 5pm Tokyo time Friday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7117, 0.7100, or 0.7083.
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 Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7177.
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 there is a long-term range with wide swings, meaning you can try to trade reversals from extremes, but it is all quite unpredictable. Any good trading opportunities that might come by today will probably not be in this currency pair. This seems to have been a good approach as the price moved little, with the Australian Dollar relatively weak but not really going anywhere. However, it looks likely that the support at 0.7117 will be hit and we may get a bullish move from there – if not that level, then from one of the levels below it. I think in the current long-term ranging/swinging conditions, a strong bullish reversal from as close to 0.7000 as possible is going to be the best trade which might set up.
I would take a bullish bias today if we get a solid bullish bounce from any of the blue support levels shown in the price chart below.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of Advance GDP data at 1:30pm London time.