Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7113.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Long Trade
- Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7039 or 0.7027.
- 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
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7100, 0.7113, or 0.7164.
- 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 last Thursday that although the USD had been weakened considerably by the previous day’s Federal Reserve dovishness, the AUD was not one of the relatively strong currencies, so I thought trading this pair was still going to be challenging, unless you were looking for quick conservative profits from scalping rejections of key levels either long or short. I was wrong as the price continued to fall quite strongly over the rest of the week, printing new lower resistance levels at and just above 0.7100.
We have no long-term trend and the action is balanced between bulls and bears quite evenly, although you could argue the bulls have the upper hand over the medium-term. I have no directional bias here and there will probably be better opportunities in other Forex currency pairs.
There is nothing of high importance due today concerning either the AUD or the USD.