Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.7260.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
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Long entry following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7230, or 0.7207.
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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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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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7299 or 0.7322.
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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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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.
I wrote yesterday that I thought that there would be a bottom here (0.7260) and the price would not fall significantly further, because we have a cluster of support levels here between 0.7200 and 0.7260, and the major psychological level of 0.7250. Nevertheless, I thought it was probably too early to get long, so it may be better to stand aside again here, due to the long-term bearish trend.
This turned out to be a reasonably good call. The price still looks weak and is trying to edge down, in the process invalidating the support at 0.7260, but it has not been able to fall much further. Therefore, I see no change to the attitude I took yesterday: very weakly bearish. The only difference is we have a better chance of seeing the price reach 0.7230. I take a weakly bearish bias below 0.7300.
There is nothing important due today concerning the USD. Regarding the AUD, there will be a release of Wage Price Index data at 2:30am.
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