Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Go long following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7498 or 0.7466.
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 Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7559 or 0.7592.
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.
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 support level at 0.7544 would probably not continue to hold, it is the level below at about 0.7500 which looked like a very interesting potential long-term bullish trade set up – potentially. This has played out, with the price continuing down and invalidating the support level at 0.7544.
There is no change to the technical picture and despite an arguably bullish RBA Rate Statement, the AUD is still weak. However, a bullish bounce at 0.7500 still looks like a very interesting possible high reward to risk trade set-up if it happens.
Concerning the AUD, the Governor of the RBA will be speaking at 11:20am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.