Yesterday’s signals were not triggered, as there was no bullish price action at 0.7028.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6986.
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 0.7028 or 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 there was very little between the bulls and bears, but it seemed the bulls had a very slight edge. However, I also said I would not want to rely on that analysis and that this pair was probably best avoided after the FOMC release later today.
This wasn’t a bad call as that release did provide some direction, although it was bearish in the end. The picture is now a little more bearish as the former support at 0.7028 seems to have slipped to become new lower resistance.
The price is trading near long-term lows so for all these reasons it appears that the bulls may have an edge, but I really want to see the price get below 0.7000 and ideally also 0.6986 before taking a bearish bias, as this area has been supportive for a long time.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of Building Approvals data at 2:30am London time.