Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 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 0.7629.
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 it looked as if the price was ready to head downwards to test the key support level at 0.7629. In fact, although the price did continue down, it made a bullish turn 10 pips above that level, and now looks to have made a higher low. The price is currently testing recent highs close to the round number at 0.7700. A break above that round number would be a bullish sign that a test of the psychologically key level of 0.7750 is on the cards.
The real action here has been driven by the New Zealand Dollar, which is more volatile and trending than the Australian Dollar. The New Zealand economy got some good news this morning, with a strong surge in employment, and the resulting rise in the Kiwi has dragged up the highly correlated Aussie with it.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Manufacturing PMI data at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement at 7pm. Concerning the AUD, there will be a release of Trade Balance data at 1:30am.