Yesterday’s signals were not triggered as there was no suitable price action at any of the key levels which have been reached over the past day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Friday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7085 or 0.7054.
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 0.7133.
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 yesterday the situation had become more bullish. I thought that if the price could get established above 0.7175 and trade there for a couple of hours, it would be a very bullish sign, as there was plenty of room for the price to rise above that. This happened and paid off over the short term, with the price rising to about 30 pips higher following the FOMC release and strong Australian employment data, before plunging quite strongly during the Asian session upon the news that China was banning imports of Australian coal. The price cut through and invalidated several key support and resistance levels. There is no trend, just a long term, wide-swinging range and a messy chart, so the best approach would probably be to trade reversals at price extremes such as the support at 0.7085 if there is another good bullish bounce there.
Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time. Regarding the AUD, the Governor of the RBA will be testifying before Parliament at 10:30pm.