Yesterday’s signals were not triggered as there no suitable price action at either of the identified key levels which were reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8 am New York time Thursday until 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6907 or 0.6887.
- Place the stop loss 1 pip below the lowest recent price.
- Adjust 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 ride.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6939.
- Place the stop loss 1 pip above the highest recent price.
- Adjust 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 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 technical picture was indecisive due to support and resistance close by and the narrowing consolidating triangle pattern forming anew. However, I was ready to take a bullish bias if we got two consecutive hourly closes above the resistance and upper trend line of the triangle at 0.6918. We did, but despite this technical bullish breakout from the structure which was suppressing the price, the price remained held by a new obvious resistance level at 0.6939.
We have a weakly bullish technical picture and the weakness of this breakout may be due to the fact that we are awaiting key U.S. jobs data later today. If the release will be seen as more positive for global risk sentiment than for the U.S. Dollar as a currency, we can expect the price to break beyond the resistance level at 0.6939.
There is nothing of high importance scheduled today regarding the AUD. Concerning the USD, there will be a release of U.S. Non-Farm Payrolls data at 1:30 pm London time.