Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7696 or 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 Trades
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch or 0.7652, or an entry into the zone between 0.7640 and 0.7629, or the next touch of 0.7598.
· 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 this pair is holding up well and still looked reasonably bullish. However, it could be over-extended after last week’s strong bullish move, so it would not be surprising if the resistance near 0.7700 or even 0.7750 caps the high of a down week this week. The RBA minutes release produced no great reaction from the market, so its back to technical factors for short-term price drivers. The price is still strong, so I am bullish over the short-term, but I think a bearish turn at either of the higher resistance levels would be an attractive trade. Both the key levels nearby are confluent with either a round number (0.7700) or a major psychological level (0.7750).
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.