Last Thursday’s signals produced a profitable long trade following the bullish rejection of the support level I had identified at 0.7391, with a bullish inside candle producing a little more than the minimum 20 pips of profit.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over 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 0.7506 or 0.7517.
- 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 Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7445 or 0.7419.
- 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 has been rising strongly since this week’s trading opened. Nevertheless, as there is no long-term trend, it is likely that the resistant area just above the big psychological number at 0.7500 will halt this movement.
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI at 3pm London time. Concerning the AUD, there will be a release of the Cash Rate and RBA Rate Statement at 5:30am.