Last Thursday’s signals might have produced a losing short trade, following the doji candlestick rejecting the resistance level identified at 0.7683.
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 0.7747.
- 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 short following some bullish price action on the H1 time frame immediately upon the next touch of 0.7629.
- 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
It looks like we are seeing a short to medium-term topping at about 0.7700. The price looks likely to pull back further, to 0.7629 or perhaps only the higher trend line a few pips above that level. There is important Australian data later, so there might be a strong movement during the forthcoming Asian session. We are now in an area of historic long-term resistance, so a bad release for the AUD later might provide an excellent entry for a long-term short trade.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of Retail Sales data at 2:30am, followed by the RBA Rate Statement at 5:30am.