Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over 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 0.7310.
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.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7410 or 0.7453.
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.
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 traders were better off staying away from here for the time being. The price has continued to range, and the best that could be said was that the best approach was probably looking to fade exhaustion near 0.7450 and 0.7310 as we continue to get ranging reversal after ranging reversal. I think this was a good call, as looking at the price chart below we can see the price is really just swinging backwards and forwards and has been for several days. I think it is best to continue to stand aside unless there are chances to fade rejections of 0.7309 or 0.7453, both of which look to be interesting levels for extreme reversals to set up.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of CPI data at 2:30am London time.