By: DailyForex.com
Yesterday’s signals might have produced a long trade entry from the hourly doji candle at 0.7650, which has just produced the minimum 20 pips profit. I do not think the price looks very bullish, so it would probably be wise to take profit quickly.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7696 or 0.7750.
· 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 Trades
· Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7640 and 0.7629, or the next touch of 0.7598.
· 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 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 Crude Oil Inventories data at 3:30pm London time.