Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.7718.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trade
· Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7664 or 0.7640.
· 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
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7775.
· 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
I took a bearish bias yesterday, but the nearest resistance level did not hold, and the price is making a series of higher lows, rising over the past 24 hours, so it did not work out so well. There is an obvious higher support level at 0.7664, and I do not have much faith in the bearish trend line above the current price shown in the price chart below, so I see the picture as more bullish today. I take no directional bias, but it is looking increasingly likely that the price will continue to rise, eventually testing the significant resistance level at 0.7775. There is still a long-term bearish trend in this pair, so ultimately, I see shorts as better long-term trades.
There is nothing due today concerning either the AUD or the USD.