Last Thursday’s signals were not triggered, as there was no sufficiently bearish price action at 0.7201.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time today.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7147 or 0.7100.
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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 Trades
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247 or 0.7275.
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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 wrote last Thursday that if the price traded above 0.7200, I would take a bullish bias and expect to see the price reach 0.7247. I was correct to some extent as the bulls did manage to push the price up to 0.7235, but the price was not quite able to reach 0.7247 before falling back. Recent hours have seen the AUD sell off with higher than usual short-term volatility as risk sentiment sours. Every time President Trump tweets out anything with potentially negative international consequences, as he did regarding the Turkish economy a few hours ago, you can expect the Australian Dollar to sell off. A more medium-term test will be if the support at 0.7147 remains intact if or when it is tested again. I would be bullish if we got a firm bounce at 0.7147.
There is nothing of high importance due today concerning either the AUD or the USD.
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