Yesterday’s signals were not triggered, as there was no bearish price action at 0.7123.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Long Trade
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7054.
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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 Trades
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7139 or 0.7175.
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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 the rise from 0.7054 was not looking especially convincing for bulls so I took no directional bias. I was wrong: the price rose quite strongly during the Asian session, helped by a sharp upwards movement in the NZD, and the nearest resistance level was taken out while 0.7139 remained intact. It seems 0.7054 has been strong support. The price has been selling off from the rise over the last few hours, but the odds are probably still very weakly win favour of another rise once the price turns, maybe to 0.7139. If the price can get established above 0.7139 it would be a bullish sign. There is no medium or long-term trend in this pair so it can be difficult to trade profitably.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CPI data at 1:30pm London time.
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