Yesterday’s signals were not triggered.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am to 5pm Tokyo time, during the next 24-hour period only.
Short Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7624 or 0.7645.
- 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
- Long entry 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
I wrote yesterday that “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.” We had the bad release, with the RBA refusing to hint at any forthcoming rate hike, so the Australian Dollar has fallen, especially paired with the USD as the USD has strengthened somewhat over recent hours. The move down is quite strong and has printed new resistance, so it may be the start of a longer-term downwards movement.
There is nothing due today concerning either the AUD or the USD. It is a public holiday in the U.S.A.