Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7625.
- 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 run.
Long Trades
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7517 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 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
Yesterday I saw the overall picture as bullish, predicting this would not change unless there is a sustained break below the supportive area centred on the major psychological number of 0.7500. The price has continued to rise and I maintain my bullish bias. However, the area just above 0.7600 up to 0.7625 has historically been a very pivotal area for this currency pair, and so a major bearish reversal there is something to watch out for.
Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm with the usual Press Conference half an hour later. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate data at 2:30am.