Last Thursday’s signals were not triggered, as the bullish price action took place just a little below the support level which I had identified at 0.7138.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Long Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7109 or 0.7088.
- 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 0.7144 or 0.7162.
- 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 Thursday that this currency pair was showing signs that it would break to medium-term new high prices. Technically, although the rise is slow, the fact that there were no key resistance levels left until the 0.7350 area suggested that the price had room to rise and that the line of least resistance would be upwards. I was ready to take a bullish bias later if the price could trade above 0.7200 for a couple of hours consecutively.
The price never was able to get above 0.7200 so this was implicitly a good recognition that this price could be a pivot. It has been breaking down ever since rejecting it over the past few days, printing new lower resistance levels along the way. The short-term price action is bearish and looks as if, should the price manage to break below 0.7125, it could fall much further over this week. I would take a bearish bias if the price is making new lows as the New York session gets underway.
There is nothing of high importance due today concerning either the AUD or the USD.