Yesterday’s signals produced a long trade from the bullish hourly candlestick which rejected the support level at 0.7105, which unfortunately just missed making the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7039 or 0.7027.
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 Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7105 or 0.7115.
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 pair looked difficult to trade – there was no trend and the consolidative swings continue, so I take no bias here today.
This was a fairly good call as the price swung up then down, holding the upper trend line of the triangle but slightly breaking the lower trend line, which I have again readjusted. The key levels above 0.7100 continue to be significant and to have again flipped, now acting as likely resistance.
This pair again looks very hard to trade, but a long from either of the support levels near 0.7000 could be a good long term so I’d take a bullish bias if there were a healthy bounce on either of those lines, despite the bearish triangle break the initial movement would indicate.
Regarding the USD, there will be a release of Core Durable Goods Orders data at 12:30pm London time. Concerning the AUD, there will be a release of Retail Sales data at 12:30am.