Yesterday’s signals produced a profitable long trade from the bullish bounce at 0.7362 and it might be wise to seriously consider closing it out in profit (at the time of writing).
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7362 or 0.7309.
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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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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 0.7429.
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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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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 if the price did now continue down to 0.7362, which would be very unlikely, it should make a strong bullish bounce. I was correct about a bullish bounce, although the facts that the bounce has not been very strongly bullish and the level at 0.7362 was reached at all suggest a more bearish picture. However, price movement looks relatively constrained, so there might be better opportunities elsewhere today. I have a weakly bearish bias now below 0.7388.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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