Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at 0.7429.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7413 or 0.7389.
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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 0.7479.
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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.
I wrote yesterday that this pair was still a mess. Support and resistance levels looked very unreliable and there was no obvious sign of anything else happening beyond a choppy ranging action centred upon the 0.7400 area. This pair looked very unpredictable and directionless and was probably best avoided. The situation is completely unchanged and every word from yesterday applies again today. I have no directional bias and it is probably best to avoid trading this pair for the time being.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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