Yesterday’s signals were not triggered, as there was no bullish price action at 0.7386.
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 0.7374.
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 0.7438.
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
Yesterday I took a cautiously bullish bias above 0.7386. This did not work out very well but with only limited damage, as the price got below that level quite quickly. There has been a high-impact event which has changed the picture on this pair to some extent: the RBA’s monthly input this morning had the effect of boosting the Australian Dollar quite strongly, as rates were left on hold at 1.50%. The price rose firmly over several hours, breaking the upper trend line of the former bearish price channel. It now seems as if the bullish movement is running out of steam close to the nearest resistance level of 0.7438. If the price slowly cools off here at this level, it could set up for a nice short trade before if falls back down again, to at least 0.7412, but be careful not too enter too early – the price needs to cool off first. Alternatively, a firm break above 0.7438 would be a very bullish sign.
There is nothing important due today concerning the USD. Regarding the AUD, the Governor of the RBA will be speaking at 4:05am London time.