Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level identified at 0.6950.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trade
- Go long immediately upon the next touch of 0.6827.
- 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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6963 or 0.6986.
- 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 bearish bias in line with the trend if the price closed below 0.6950 later for two consecutive hours. It did so, and at the time of writing that trade is 2 pips in profit, but we are breaking into multi-month bearish blue sky now below 0.6940 with ever sign that the price is going to continue to fall to make lower prices.
The Australian Dollar is the weakest major currency at present and there are no support levels to prevent the price falling by at least another 100 pips, so the line of least resistance is clearly downwards.
There is no reason not to be bearish and I take a strongly bearish bias here.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of Wage Price Index data at 2:30am London time.