Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.
- 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.
Short Trade
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7321.
- 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.
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 I would take a bullish bias today if the price held at the support level of 0.6165 which is confluent with a trend line. If the bounce were strong, it would be a bullish sign. However, the NZD looks even more bullish than the AUD, so if that persisted, looking for a long NZD/USD trade might be a superior plan.
I was correct to see a broadly bullish picture as the price has continued to rise over the past day, and the NZD has been bullish also. I have a bullish bias today and will persist with it if we get another higher daily close at the end of the day.
There is nothing important due today concerning either the AUD or the USD.