Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.7410.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered 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 0.7310.
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.
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 Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7453 or 0.7479.
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.
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 I thought it was best to continue to stand aside unless there were chances to fade rejections of 0.7309 or 0.7453, both of which look to be interesting levels for extreme reversals to set up, after noting the ranging conditions which have been prevailing here for some days. It is a quiet market in Forex generally and there is a relatively high amount of volatility here, but the price chart below shows the action is quite unpredictable, except at the extremes. I still have no reason to take any directional bias, and I see the best trade which might set up today to be a short from a bearish reversal at 0.7453.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.