By: DailyForex
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7778.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
- Go long following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next entry into the zone between 0.7645 and 0.7630.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 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
This pair is now looking much more predictable, as the price stays established within a medium-term bearish channel, breaking down below key support levels which are reliably but roughly flipped to probable resistance levels. The latest development is the new resistance forming at 0.7778, which is holding, although it cannot be said that the price is falling very strongly from that area. This is probably because the price has already made some bullish bounces around the key psychological level of 0.7750 which is not far below where the price is now. There is definitely room for the price to fall further below that area, because there are no key support levels until 0.7645. I have a bearish bias.
There is nothing significant due today concerning either the AUD or the USD. It is a public holiday in the U.S.A.