Last Thursday’s signals were not triggered as the bullish price action that day was unfortunately not confluent with the key support levels which were reached.
Today’s AUD/USD Signals
Trades must be taken between 8am New York time and 5pm Tokyo time Tuesday.
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7117 or 0.7100.
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.
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.
I wrote last Thursday that there was no trend, just a long term, wide-swinging range and a messy chart, so the best approach would probably be to trade reversals at price extremes such as the support at 0.7085 if there was another good bullish bounce there. I was almost correct, as there was a strong and sharp bullish reversal just a few pips below that level.
The picture now is more bullish as we have seen a strong rise in the price, with the U.S. Dollar currently acting as the weakest currency generally, which suggests still higher prices. Furthermore, there are no obvious resistance levels above the current price for quite a long way, so the line of least resistance looks to be upwards. The only obstacle might be the confluence of a recent swing high and a round number at 0.7200.
There is nothing of high importance due today concerning either the AUD or the USD.