Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7871.
- 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 Trades
- Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7778 and 0.7760.
- 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 is starting to look more interesting, due to the break of the bearish trend lines and the way the nearest resistance level has held. It looks as if there is now going to be a fight between bullish and bears over the area between 0.7760 and 0.7871. The outcome is very unpredictable, as there is some very major U.S. data due over the remainder of this week. There is no long-term trend which can be relied upon, either. All traders can do here is watch the reactions if and when the key levels are reached.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, Crude Oil Inventories half an hour later, and then finally Janet Yellen opening a conference at 8:15pm. Concerning the AUD, there will be releases of Retail Sales and Trade Balance data at 1:30am London time.