Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 0.7129 that day.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7103.
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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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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 0.7203.
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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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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 noted last Thursday that the price was testing the 0.7090 area again from below. It might act as resistance again, but I thought overall this pair was better avoided unless we got a good bearish reversal at the resistance level of 0.7129. This was not a bad call, as the level at 0.7129 was quite pivotal, initially holding but luckily without any firmly bearish price action. The price eventually broke above it but not by much, then pulled back and is rising firmly now off the strong support level just above the round number at 0.7100.
Overall this pair is quite dull, it is relatively flat and not going far in any direction. Obviously, there is a slightly bullish medium-term structure which combined with the short-term movement suggests that the price might rise further over the coming days, if it can rise above the high at about 0.7140.
There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.
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