Yesterday’s signals may have produced a short trade just a few hours ago following the bearish rejection of the resistance level at 0.7446. It looks as if the price is not going to fall much further so it would probably be wise to take profit as soon as possible.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during 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 0.7466 or 0.7506.
- 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 Trade 1
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7331.
- 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 AUD is relatively weak, so although it rose against a very weak U.S. Dollar, it was not able to get above the nearest resistance level I highlighted in yesterday’s chart. There is not much profit on the table but it is probably worth taking. The outlook for this pair looks uncertain, even though there is a long-term bearish trend. Much later there might be a confluence between the bearish trend line and the horizontal resistance – a double top forming there could produce a stronger profitable short trade.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing due concerning the AUD.