Yesterday’s signals were not triggered, as there was no bullish price action at 0.7175.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time up to 5pm Tokyo time today.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7116 or 0.7075.
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 yesterday that I would be more comfortable with taking long trades than short trades today, but I was not clear about likely direction, despite the seeming short-term bullish trend. This happened to be a good call, as the speech by the Governor of the RBA overnight (particularly his comments on being prepared to cut interest rates) had the effect of sending the AUD and the price of this pair down quite strongly, breaking cleanly below the former support level at 0.7175 which is probably now new resistance.
I have no directional bias and the only useful thing I can say is that it looks as though the price may flatten out at the nearby support of 0.7116.
There is nothing of high importance due today regarding the AUD. Regarding the USD, the Chair of the Federal Reserve will be making a minor speech at Midnight London time.