Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time today only.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7175 or 0.7116.
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 0.7247.
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 it looked as if the bearish momentum would carry the price down to 0.7075, the next support level. My bearish bias was correct although the price was just a pip or two off hitting that low before it turned around and rose very strongly, so it was a good call.
The price has now seen a very strong rise, although the rise in the NZD has been even stronger. The long-term bearish trend line shown in the price chart below has been invalidated and we have new higher support levels. I think 0.7175 is likely to hold so I would take a bullish bias today above that level, in line with the strong bullish momentum we have already seen. However, I think this approach would be even better today with the NZD/USD currency pair.
There is nothing important due today regarding either the USD or the AUD.