Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time Wednesday.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7117, 0.7100, or 0.7083.
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.
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 that the picture seemed to be more bullish as we have seen a strong rise in the price, with the U.S. Dollar currently acting as the weakest currency generally, which suggests still higher prices. Furthermore, there were no obvious resistance levels above the current price for quite a long way, so the line of least resistance looked to be upwards. I was wrong: once New York opened, this pair sold off slowly and has been inching down quietly ever since.
There is little to say, except there are no obvious resistance levels anywhere nearby, and we are likely to reach the support level at 0.7117 first. The reaction there will probably give us a clue as to what is in store next. I think it is likely that one of these several levels of support above 0.7000 will hold firmly and produce another bullish thrust.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time as well as testimony before the Senate from the Chair of the Federal Reserve.