Last Tuesday’s signals produced a nicely profitable long trade following the bullish pin candlestick which rejected the support level identified at 0.7192.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7231 or 0.7197.
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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 Trade
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7321.
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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
I wrote last Tuesday that the picture was looking more bullish as a new key higher double bottom is printed at 0.7145. However, as the bullish movement of recent hours was running out of momentum, I did not have any directional bias.
I was at least correct to note that the price was looking more bullish as it has continued to rise while most of the Forex market has been flat. We see new higher support levels and in recent hours the resistance at 0.7270 seems to have broken, clearing the way for a further rise to the 0.7321 area. I will have a bullish bias above 0.7285 today.
There is nothing important due today concerning either the AUD or the USD.
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