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 entered and closed between 8am New York time and 5pm London time today.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6992.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7100.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 the price was now rising strongly but was in a huge space with no support or resistance levels between 0.7200 and 0.7000. Anything could happen in this area, so I had no bias. As it happened, the price broke below the round number of 0.7100, but has moved up a little today since the week’s open after Friday’s close just 25 pips or so above the psychologically important 0.7000 level. The price looks very flat and as Australia is already on holiday, we are likely to see very little movement today. The only possible trade might be a scalp short following a rise to and bearish bounce off the resistance at 0.7100.
There is nothing important due today concerning either the AUD or the USD.