Yesterday’s signals were not triggered, as there was no bullish price action at 0.7116.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7075.
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 0.7112, 0.7139, or 0.7175.
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 I had no directional bias and the only useful thing I could say was that it looked as though the price may flatten out at the nearby support of 0.7116. I was wrong insofar as the price broke below that level, but it did not go much further, so my relative scepticism about the bearish momentum may have been somewhat justified.
The price now seems to be starting to make a bullish “U” shape which suggests it is truly bottoming out now. This is far from confirmed, but I think that if the price continues to struggle higher and get established above 0.7112 during the New York session, we would be likely to see still higher prices, although 0.7139 looks likely to hold over the short-term.
There is nothing of high importance due today regarding either the AUD or the USD.