Yesterday’s signals were not triggered as there was no decisive bullish price action at either of the support levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of the bullish trend line shown in the chart below which is currently sitting just above 0.7070, or 0.7039.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7115 or the bearish trend line shown in the chart below which is currently sitting at 0.7145.
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 if the USD got weaker, there was nothing to stop the price moving up all the way to 0.7164, but I would be very careful and just try to trade conservatively on short time frames looking for long trades only in the meantime.
As it happened, the AUD weakened quite decisively, due to the strong depreciation in the New Zealand Dollar after the RBNZ announced a more dovish approach on the question of future rate hikes. That has put this trendless pair into a position where there is a wide, dominant consolidating triangle, which is likely to hold today.
I take no directional bias here and I think the trend lines are more likely to be reliable than the resistance level at 0.7115.
There is nothing of high importance due today concerning either the AUD or the USD.