Yesterday’s signals were not triggered as there was no bullish price action when the price reached the anticipated support level at 0.7941.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7941.
- 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 0.7878.
- 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
I wrote yesterday that a break below 0.7941, alternatively, would be a bearish sign and put the continuation of the long-term bullish trend in some doubt. This is what happened and to reinforce the bearish outlook, the level now seems to be acting as resistance. The short-to-medium-term trend is bearish and it looks as if the price is likely to continue falling to at least 0.7878, where we may get a bullish reversal back into the direction of the longer-term trend. Much will depend upon key data due tomorrow for both sides of this pair, though, which could push the price anywhere if there are any surprises.
Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time followed by ISM Non-Manufacturing PMI data at 3pm. Concerning the AUD, there will be releases of the RBA’s Monetary Policy Statement and Retail Sales data at 2:30am.