(MENAFN- Daily Forex) Last Thursday's signals were not triggered, as none of the key levels were ever reached.
Today's AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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.
Short Trades
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247 or 0.7275.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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.
AUD/USD Analysis
I wrote last Thursday that we were currently seeing a strong sentiment against the Australian Dollar which is always sensitive to risk-off sentiment, which is motivating the market right now. So, although the bearish movement may have been running out of momentum, I was be prepared to take a bearish bias if we see a retracement to the 0.7250 level following by a failure and a fresh bearish push. This was a pretty good call, as the price continued to trade lower, it was just unfortunately that the 0.7250 level was never quite reached as it has certainly acted as strong resistance and succeeded in suppressing the price. It looks now as if the directional movement may take a rest and we are likely to see the price consolidate between 0.7165 and 0.7250. A break above 0.7275 would be a bullish sign. I have no directional bias but would be prepared to take a short-term short bias if the price fails strongly at 0.7250 today.
There is nothing important due today concerning either the AUD or the USD.
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