Last Wednesday’s signals were not triggered as there was no bullish price action when the support level at 0.7002 was reached that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6950.
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 0.7047.
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 Wednesday that price action over the past day had made the picture a little more bullish – we saw new higher support slowly taking hold at 0.7002 which was a significant round number. I would be prepared to take a bullish bias if the price got back down there and made a strong bullish bounce.
There was no bounce there after New York opened and the level was quickly invalidated. All we have now is a wide, choppy range between 0.7047 and 0.6950 with no key support or resistance levels within that area. There is a long-term bearish trend, but the price action looks neutral and evenly balanced between bulls and bears.
I would take a bearish bias in line with the trend if the price closes below 0.6950 later for two consecutive hours.
There is nothing important due today concerning either the AUD or the USD.