Yesterday’s signals produced a long trade from the bullish inside candlestick on the hourly chart which rejected the support level at 0.7066. Unfortunately, I think this trade looks unlikely to end well so it may be wise to close it as it is currently near break-even.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7066, 0.7054, 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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7117.
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 although we were seeing a slow move down over recent days, I still thought we were more and more likely to get a major bullish reversal the closer we get to 0.7000 or any of the three support levels above it. So, I would take a bullish bias if there is a strong bullish move from any of these support levels later today. This was an OK to some extent as we did get a bounce at the nearest support level right to the pip, but it looks as if it will not follow through, with the price held down by the short-term bearish trend line which is shown in the price chart below. This leaves a mixed picture, but I would be more inclined to be bullish if the price rises from this supportive area to break the trend line and get established above 0.7100
There is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the Reserve Bank of Australia will be giving a minor speech at 10:10pm London time, followed by the release of GDP data at 12:30am.