Last Thursday’s signals were not triggered as the two levels which were hit by the price movement that day did not hold appropriately.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trades
-
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7054 or 0.7039.
-
Place the stop loss 1 pip below the local swing low.
-
Adjust the stop loss to break even once the trade is 20 pips in profit.
-
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
-
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7123, 0.7139, or 0.7175.
-
Place the stop loss 1 pip above the local swing high.
-
Adjust the stop loss to break even once the trade is 20 pips in profit.
-
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 Thursday that that if the price continued to struggle higher and get established above 0.7112 during the New York session, we would be likely to see still higher prices, although 0.7139 looked likely to hold over the short-term. This was a good call as the price failed to get established above 0.7112 and has gone sideways ever since.
There is no long-term trend in this pair, but the medium-term momentum is with the bears due partly to the strong U.S. Dollar and party due to the RBA’s statement last week which was seen as a little dovish. As such, I would be prepared to take a bearish bias if (and only if) the price makes a strong bearish reversal at any of the resistance levels above. However, it is also worth noting that the price is getting closer to the big round number at 0.7000 and the support levels near to that number could be very firm still.
There is nothing of high importance due today regarding either the AUD or the USD.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.