Yesterday’s signals produced a profitable short trade following the bearish outside candle rejecting the resistance level at 0.7625. The market came back to stop the remainder of the position out, however.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only
Short Trade 1
- Short trade following some bearish price action on the H1 time frame immediately upon the next touch of 0.7625.
- 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.
- 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.
Long Trade 1
- Long trade following some bullish price action on the H1 time frame immediately upon the next touch of 0.7566.
- 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.
- 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
The price finally reached the very pivotal area between 0.7600 and 0.7625, which represents a 2-month high price. Sentiment has strengthened on the USD as the Federal Reserve raised rates by 0.25% to 1.25%, however, the Australian Dollar remains relatively strong following better than expected Australian economic data which was released a few hours earlier. Looking at the chart, although we see three short-term rejections of 0.7625, I am not convinced that the pair is ready to roll over and turn bearish. It would need to break below 0.7500 very quickly, or spend some more time failing to rise above 0.7625.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.