Last Thursday’s AUD/USD signal was not triggered as there was no bearish price action when the resistance level at 0.7398 was first reached that day.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken before 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7363, 0.7384, or 0.7426.
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7349, 0.7335, or 0.7305.
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.
Remove 50% of the position as profit when the price reaches 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 last Thursday that the AUD was strong and rising firmly and there was no reason yet why this should stop. This was an OK call as the price did rise over that day, although it never retraced to support so did not give a trigger signal for a long trade entry.
The technical picture now is bearish as this week has seen a moderate risk-off move, with the Australian dollar falling with some bearish momentum since the latter part of Monday. The price is near its low for the week. At the time of writing, the price is sitting heavily at the support level of 0.7349 which is confluent with a half-number at 0.7350 and this may yet be today’s pivotal point. However, the momentum suggests a break below that support is more likely than not to happen today, so I will be happy to take a bearish bias and enter a short trade if we get two consecutive lower hourly closes below 0.7349.
This pair looks attractive to trade as it is making some of the biggest price movements in the Forex market right now, so there is action to be had here.
Regarding the USD, there will be a release of unemployment claims data at 1:30pm London time. There is nothing of high importance cheduled today concerning the AUD.