AUD/USD Signal Update
Yesterday’s signals were not triggered as although the price has bounced twice the support level identified at 0.7707, the first time it happened this was an inside bar break in the wrong direction.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7805.
Put the stop loss 1 pip above the local swing high.
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 run.
AUD/USD Analysis
I expected yesterday that 0.7805 would hold, and that 0.7707 was likely to act as support. This scenario has come true, with the price falling yesterday during the late part of the New York session to 0.7707 and bouncing back with some momentum. The same thing happened a few hours later, but with less momentum. This suggests that the support there might be too used up to risk another attempt at a long entry, so the available key level we have to work with is 0.7805. An alternative would be taking a short after a break down past 0.7700 but that would be more risky.
Beyond 0.700, there is local support at around 0.7650.
There are no more high-impact events scheduled today for the AUD. Regarding the USD, there will be Retail Sales and Unemployment Claims data released at 1:30pm London time.