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 0.7309.
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 0.7479.
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 I still had no reason to take any directional bias, but I saw the best trade which might set up to be a short from a bearish reversal at 0.7453. The reversal candle just nudged a pip or two higher, but it did produce a few short pips of profit.
This pair still looks difficult to trade, with the new support at 0.7429 already looking so weak and unreliable that I have not included it in the section above. There is a very wide range between 0.7479 and 0.7309 within which the price might do anything. There is volatility, but unless you are a very skilled scalper or day trader looking for short-term momentum, this pair is best avoided for now.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.