Yesterday’s signals were not triggered, as none of the key price levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trade
* Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7466, if there have been no hourly closes below that level.
* 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.
Short Trade
* Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7559 or 0.7592.
* 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 wrote yesterday that the action was looking bearish, suggesting lower prices are going to happen today following the selling at the “shoulder” of 0.7540, and that a major bullish reversal in the 0.7500 was looking less likely. The first part of my forecast turned out to be accurate, as the price has continued to trade downwards and is now finally just about reaching the support at 0.7466. This is close enough to the 0.7500 level to be an interesting place for a possible long-term bullish turn to happen, so the level should be watched closely – so far, there is no sign of it happening.
I have no bias today as the major move here may already have played out. If 0.7466 breaks down soon, it would be a bearish sign.
Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time. Concerning the AUD, the Annual Budget Release will take place at 10:30am.