Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trade
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6992.
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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 0.7129.
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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 yesterday that if the price continued to move down from 0.7090, it could go all the way to at least 0.7050, so it is worth watching what happens at the current price area carefully. The long-term bearish trend could help bears a great deal here. This was a good call, at least partially, as the 0.7090 area held, and the price fell almost another 50 pips from there during yesterday’s New York session. However, we have seen a strong recovery from that low, and the price is currently testing the 0.7090 area again from below. It might act as resistance again, but I think overall this pair is better avoided unless we get a good bearish reversal at the resistance level of 0.7129.
There is nothing important 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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