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 must be taken until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
- Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.
- 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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7250 or 0.7268.
- 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 only be bullish if the price would test 0.7268 and if that level then held. Conversely, a reversal at 0.7321 could be interesting for a short trade as it was an important historic price level. Neither of these scenarios played out. I also said the odds were slightly in favour of the bulls, and we did see higher prices for a few hours before the lows broke down.
A bullish U.S. Dollar has dominated the Forex market then, and we have seen a deep bearish retracement from the new 20-day high prices we were getting last week, so I don’t see any strength remaining here in the Australian Dollar – that seems to be over, but I think that a test of the support level at 0.7165 will tell us a lot. If that level hells, the bulls can have another shot at driving the price up to new highs.
I have no directional bias on this pair today.
There is nothing important due today concerning either the AUD or the USD. It is a public holiday today in the U.S.A.