AUD/USD: AUD no longer leading the Forex market
Yesterday’s signals were not triggered, as the bearish price action took place between 0.7139 and 0.7197.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7121 or 0.7035.
Place the stop loss 1 pip below the lowest recent price.
Adjust 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 ride.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7197.
Place the stop loss 1 pip above the highest recent price.
Adjust 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 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 a break above 0.7139 would be a weakly bullish sign. I preferred to stand aside for the day and wait to see how the action develops here before trading this pair.
This was a pretty good call as standing aside was the correct approach, as although the price did break above 0.7139 and rose another 40 pips higher, it essentially went sideways, although there was a slight bullish bias over the day.
The technical picture looks very weakly bullish above 0.7121, but again, it looks as if today the action in the Forex market is going to be away from the Australian Dollar.
This could change later as we will be getting a release of key Australian inflation data during the Asian session.
I will be prepared to take a long trade from a bullish bounce above 0.7121 after that inflation data release later, or a short trade if the price gets established below that level and makes a bearish reversal off it from below.
Regarding the AUD, there will be a release of CPI (inflation) data at 2:30am London time. There is nothing of high importance scheduled today concerning the USD.