Last Tuesday’s AUD/USD signal was not triggered as there was no suitable price action at either 0.7278 or 0.7252 when these levels were reached. The support level at 0.7232 held but this bullish bounce did not happen until after the Tokyo close.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken before 5pm Tokyo time Friday.
Short Trade Idea
Go short immediately upon the next touch of 0.7375.
Put 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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7267 or 0.7232.
- Put 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.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 last Tuesday that the medium-term direction looked very unclear here. I thought that the support level at 0.7252 might be strong, but I was wrong about that.
The price chart below shows that this currency pair has been ranging over the past three weeks or so, between 0.7175 and 0.7315. The USD has been strong, but after a long period of weakness, the AUD has finally regained some relative strength.
I do not see any reason why this ranging behaviour will be likely to end any time soon. That means that a good strategy might be to look for short trades from the top of the price range above 0.7300 when there is price action which looks like signifying a bearish reversal. However, there is a level within the price range at 0.7232 which looks likely to provide strong support when next reached, at least temporarily, so a long scalp at least will probably be available there.
I doubt this currency pair will provide much opportunity to traders today, there will probably be more action in the European pairs like EUR/USD or GBP/USD.
There is nothing of high importance scheduled today concerning either the USD or the AUD