Last Thursday’s signals were not triggered as none of the key levels given have been reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7231 or 0.7197.
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 Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7321.
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 last Thursday that I would have a bullish bias above 0.7285 that day. This was an OK call as the price rose almost another 20 pips after it breached that level, with reasonably steady movement. After such a strong counter trend movement last week, we can expect the price to fall back to some extent over the coming week. It has already done so but has not yet reached the support level at 0.7231. I would be bearish if the price can break below that level, which looks very likely to be pivotal today.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.