Last Tuesday’s AUD/USD signals were not triggered, as none of the key levels identified that day have been reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7702 or 0.7722.
Put 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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7606 or 0.7555.
Put 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.
Take off 50% of the position as profit when the price reaches 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 Tuesday that there were several bearish signs, notable the breaching of several support levels and the weakening of the AUD by the RBA’s expansion of its asset purchase program, plus general strength emerging in the USD. I thought it was likely that the price would fall over the course of the day, and I was correct about that.
The price made a low last Tuesday not far from the support level I had identified at 0.7555. The price has recovered gently from there, but bulls can be a little encouraged by the new higher support level printed by the price action at 0.7606, just above the round number at 0.7600.
The price action looks a little shaky and unpredictable. The price is currently caught between a new bearish trend line shown in the price chart below, and the new support level at 0.7606. It could go either way although bears probably have a small edge. For this reason, I think if the price can get established later below 0.7600, it would be a bearish sign and likely signal a further fall to the next support level at 0.7555, but I do not have strong faith in this forecast – I just think it is a little more likely than not.
There is nothing of high importance scheduled today regarding the USD. Regarding the AUD, the Governor of the RBA will be testifying before Parliament at 10:30pm London time.