Yesterday’s signals were not triggered, as there was insufficiently bullish price action at any of the key support levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6986.
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 0.7039, 0.7054, or 0.7066.
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 that we had a mixed picture, due to bearish pressure but plenty of bullish support above 0.7000. I was more inclined to be bullish if the price rose from this supportive area to break the trend line and get established above 0.7100. In fact, the bears managed to push the price below all three support levels, which was a significant bearish development, but the price still remains above the major round number at 0.7000 which can give hope to the bulls.
I think the price is likely to fall further today if it cannot quickly get established above 0.7039 at least. However, if there is a fast move down to 0.6985 and a strong bullish rejection which sees the price recover quickly to settle above 0.7000, there might be scope there for a high reward to risk but improbable strategic long-term long trade entry
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Retail Sales data at 10:30pm London time.