Yesterday’s signals were not triggered as 0.7836 was not reached until 5pm Tokyo time.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 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 0.7870 or 0.7944
- 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 ride.
Long Trade 1
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7778.
- 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 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
This pair looks very problematic, although it is acting bearishly and generally falling. It has hit the anticipated support level at 0.7836 and made a small and unclear bounce which cannot be acted upon. The price is still in a bearish channel and the new resistance level emerging above at 0.7870 is also a bearish sign. The best possible set-up would probably be a short entry following a rejection of that level.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.