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 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 0.7577 or 0.7562.
- 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
The trend line connecting the highs has been a little ambiguous, but the price has developed in a way where I think the way the line is now drawn in the chart below should be more accurate and reliable. The big picture is the area around 0.7625 has a confluence of factors making it a strong resistance zone. If the price cannot break up past it, it will eventually turn and fall. However, we might be some time away from that scenario, as we have not even had a retest of the nearest key support level, and the price is still showing a pattern of higher lows.
There is no long-term trend and I have no bias, I see the best action in this pair to watch and wait for the time being.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.