Yesterday’s signals produced a profitable long trade following the bearish reversal at the resistance level identified at 0.7559. As there seems to be support very close to the important psychological level of 0.7500, it is probably wise to exit most of any remaining position now.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7559 or 0.7539.
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 run.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7505.
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 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
This pair made an obvious and clean bearish turn off the resistance level I identified yesterday at 0.7559. It is too early to tell whether the psychologically important 0.7500 area is going to hold. The action is looking more bearish than bullish so possibly not.
There is no long-term trend, so it is possible to trade either way when it becomes obvious one side of the market is beginning to prevail over the other.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.