Yesterday’s signals were not triggered, as there was no bearish price action at 0.7558.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7575 or 0.7598.
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 ride.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7555 or 0.7498.
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 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 it would probably be a slow and consolidative market, which it largely was, but in the past few hours we have seen a strong and accelerating upwards move in this pair which has invalidated two resistance levels. It is probable now that the former resistance at 0.7555 has flipped to become new support. The Australian Dollar has been falling for a while, but the fact that the bottom was carved out at such an important psychological level (0.75) makes the bullish turn more convincing. In addition to the technical aspect, the U.S. Dollar is weaker in recent hours, and the New Zealand Dollar is still getting a boost from the new nominee as Governor of the central bank. This suggests the ultimate direction is open to question, but there could be a chance of a good long-term long trade in this area. It should be noted that the NZD is relatively stronger than the AUD.
Concerning the USD, there will be a release of PPI data at 1:30pm London time. Regarding the AUD, the Governor of the Bank of England will be speaking on a minor issue at 10:15pm London time.