Yesterday’s signals were not triggered, as the bullish price action took place slightly below the bullish trend line drawn in yesterday’s price chart.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday 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 the bullish trend line shown in the chart below which is currently sitting just above 0.7070, 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 Trade
Go short 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 just below 0.7140.
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 this trendless pair was showing a wide, dominant consolidating triangle, which was likely to hold today.
Although the lower trend line, which was reached, did not hold precisely, the price quickly bounced back once it got below it and made a small bullish move. I have readjusted that lower trend line to fit yesterday’s low price.
It seems that the situation has not changed – we have the same resistance levels and a wide consolidating triangle.
The action looks slightly heavy so the best opportunity might come with a decisive, strong break below 0.7070, which should send the price at least 20 or 30 pips lower.
Generally, there are likely to be better trading opportunities today in other Forex currency pairs.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time.