Yesterday’s signals were not triggered, as there was no bullish price action at 0.7577.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
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Go long following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7545 or 0.7500.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7702.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 the price will not fall much further over the course of today but is instead most likely to consolidate above the support with a slightly bullish bias. This was true for several hours, but once the Asian session got going the price started to fall again and is now making new lows and has invalidated the former support levels. This is a very bearish sign so still lower prices look likely. We are now within sight of the support level at 0.7500 which is a major psychological level for this pair, which again might provide a very interesting long trade opportunity. Unfortunately, there are no obvious resistance levels anywhere nearby, so if you want to go short you will have to do it off naked price action only.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.
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