Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 0.7960.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time until 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 0.7906.
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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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Go short following some bearish price action on the H1 time frame immediately upon the next touch 0.7994 or 0.8043.
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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 this pair was simply not attractive to trade now, because there are no obviously and clear levels now for a long way in either direction. We only had a weak, short-term bullish channel holding up the price. There has been absolutely no change to this technical situation, a weak bullish channelling very far from any key support or resistance. I have no directional bias and think there are likely to be better opportunities in other currency pairs.
Regarding the USD, there will be a release of PPI data at 1:30pm London time. Concerning the AUD, the Governor of the RBA will be testifying before Parliament at 10:30pm.
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