Last Thursday’s signals were not triggered as the bullish price action at 0.7085 was too slow to trigger an entry, but that level acted as good support and is still valid today.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am to 5pm Tokyo time Tuesday.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7133 and 0.7085.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7175.
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 as there was no direction here on any time frame except the shortest, the best opportunities which could arise here in this pair were fast reversals on short time frames at the extremes of price at 0.7054 and 0.7139. This did not work out but at least was enough to stay out of trouble, with the picture becoming more bullish as 0.7085 held as good support and then subsequently 0.7133 did too. The problem is that if you zoom out to the daily time frame on a price chart you see the price has been going sideways with a lot of choppy action over the long-term, meaning that any kind of trading with the trend is going to have a doubtful chance of success. I take no directional bias unless the RBA release later is seen as more bullish than expected, in which case we will be likely to see a further bullish move at that time.
Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 12:30am on Tuesday. Concerning the USD, it is a public holiday in the U.S.A.