Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7640 or 0.7629.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Short entry following some bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7726 and 0.7735 or upon the next touch of 0.7773.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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
Yesterday I took a bearish bias as the AUD was clearly weak, as was its most closely correlated currency, the NZD, which added to the bearish picture. The price has fallen by a little over the past 24 hours, but not by much, although there is every reason to remain bearish, with a pattern of lower highs and lower lows clearly visible in the price chart shown below. The technical picture is unchanged.
Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference. Concerning the AUD, there will be a release of Unemployment Rate and Employment Change data at 12:30am London time.
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