Yesterday’s signals were not triggered as none of the key levels were hit before 5pm Tokyo time.
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 Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7245 or 0.7221.
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.
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 Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7274 or 0.7298.
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.
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 was moving quite bullishly over the short term and appeared to be heading for the double top at 0.7340 again.
I thought that this level looked to be extremely pivotal. I was ready to trade either a breakout or a rejection there.
As it happened the market environment changed quite strongly over the past day, with risk-on moving firmly to become risk-off sentiment. This hit the Australian dollar hard and boosted the U.S. dollar, so we have seen a major turnaround.
Technically, it should be noted that the price has been moving over the past two weeks within a range from 0.7340 to 0.7221. Should the price succeed in moving down to 0.7221 or even the support at 0.7245 and then make a firm bullish reversal, that would be an attractive long trade, as there is no compelling reason why risk-off sentiment should persist for longer than a few days.
There is nothing of high importance due today concerning either the AUD or the USD.