Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7750.
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
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7645.
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
Yesterday I wrote that it looked as if the price were heading towards 0.7771. Not only did the price break through this level easily, it also broke down past the key psychological level at 0.7750 very easily, upon significantly lower than expected Australian inflation data. These levels should have now become resistance, and there are no key support levels before 0.7645, so the price has room to fall further if it wants to.
There is a strong medium-term bearish trend, and this pair is in the main focus of the market right now, with high relative volatility.
There is nothing significant due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm.