Yesterday’s signals produced a long trade following the bullish outside candlestick which rejected the support level identified at 0.7054 to the pip. It seems the trade is not going anywhere after several hours, so it may be wise to exit it immediately.
Today’s AUD/USD Signals
Trades may only be entered between 8am New York time Tuesday until 5pm Tokyo time Wednesday.
- Go long following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7054, 0.7039, or 0.6986.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Go short following some bearish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7123, 0.7139, or 0.7175.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 yesterday that I would be prepared to take a bearish bias if (and only if) the price made a strong bearish reversal at any of the resistance levels above. However, I also noted 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. That was a good call as the support at 0.7054 held to the pip, but the rise from there is not looking especially convincing for bulls after several hours. I have no directional bias, it looks very evenly balanced here, and there is no long-term trend.There is nothing of high importance due today regarding the AUD. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm London time.
All copyrights for this article are reserved to Daily FX