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 H1 time frame immediately upon the next touch of 0.7987.
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 H1 time frame immediately upon the next touch of 0.7807.
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
I had a bullish bias at the start of this week, as the price had recently broken out above a key bearish trend line, and looked to have plenty of room to rise much further. There was a further rise in price, but over the last couple of days it has faltered, and the price now seems to be consolidating above 0.7820. I remain bullish but weakly so, even though as there are no key resistance levels for a long way, the price still has a lot of room to rise further.
A break below the 0.7800 area would be a bearish sign, but there are several support levels not far below that, so I don’t think the price would be likely to make much progress downwards from there.
There is nothing significant due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time