Last Monday’s signals were not triggered, as there was no bearish price action at either 0.7107 or 0.7144.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Long Trade
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7144 or 0.7109.
- 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 Trades
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7164 or 0.7177.
- 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 last Monday that the price was trapped between support at 0.7088 and resistance at 0.7107, and overall, this pair was still a mess and best avoided for the time being. Since then, the price has turned quite decisively bullish, breaking above the 0.7140 which had held the price down for more than two weeks.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.