Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6992.
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 0.7160.
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 as the price was still far from any key levels, but as the picture was more bearish, we could probably expect the Australian Dollar to fall further in the event of any further sharp falls in stock markets. My final analysis was that I would avoid trading this pair, but I thought it was more likely to move down that day than to move up. This was a good call as it spent the greater part of the New York session falling strongly to new lows, before bouncing back on Friday.
The challenge here is that it is hard to see any key levels within a very wide, almost 200 pip range, except for 0.7105 which is currently holding the price down, but also looks very likely to break and become invalidated soon. For this reason, I do not want to use it as a level, but if the price stalls and falls from that level it might give a short trade opportunity. Apart from that, I have no directional bias on this pair, and still consider that there will probably be better Forex trading opportunities in other currency pairs.
There is nothing important due today concerning either the AUD or the USD.