Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Long Trade
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7028.
- 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 0.7088.
- 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 the price looked very uncertain – it could go either way. The best potential opportunity I saw which might set up today would be a long trade from 0.7028 after a strong bullish bounce there, yet the odds over the next few days were still more likely to be on another bearish test of the 0.7000 area. This was almost a really good call as the price did dip to a level very close to 0.7028 before making a strong bullish bounce.
However, it is very hard to say what will happen here next. This pair is probably best avoided for the time being until we get more clarity on direction.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.