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.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7901.
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.
Short Trade
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7987.
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.
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
My bullish bias from last Thursday has paid off. Almost everything is rising with good, solid momentum against a weak U.S. Dollar, and it is on USD-driven moves like this that it is easiest to make money in the Forex market. The Aussie is not in a long-term bullish trend, but is certainly in a medium-term one. We had an initial bearish bounce from the former resistance when it was reached, but the upwards movement continued, and has now probably flipped the round number at 0.7900 to support. Of course, even though I have a bullish bias and the picture looks very bullish, as we approach the big round number at 0.8000 there is likely to be some resistance and profit-taking. If the price effortlessly clears 0.8000, that would be an extremely bullish sign.
There is nothing important due today concerning either the AUD or the USD. It is a public holiday in the U.S.A. today.