Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7840 or 0.7790.
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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 Trade
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7935.
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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 I maintained my bullish bias and there was nothing preventing the price from continuing up to rise as high at 0.7935 soon. This turned out to be the correct approach, with the price rising slightly over the past 24 hours and rising more strongly over the past 12 hours or so. The bullish structure remains intact, the nearby support has not been tested, and the pattern of higher lows is still there. The only element the bulls do not have just yet is a new high above the 0.7900 area. There are enough bullish signs to maintain a bullish bias.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Retail Sales and PPI data at 12:30pm London time, followed later by Crude Oil Inventories at 2:30pm.
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