AUD/USD Signal Update
Yesterday’s signals expired without being triggered.
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
• Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7220.
• Put the stop loss 1 pip above the local swing high.
• Adjust the stop loss to break even once the trade is 30 pips in profit.
• Remove 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to run.
Short Trade 2
• Go short following some bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at around 0.7335.
• Put the stop loss 1 pip above the local swing high.
• Adjust the stop loss to break even once the trade is 30 pips in profit.
• Remove 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to run.
Short Trade 3
• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7442.
• 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
Being very directly exposed more than most economies to the Chinese crisis, and being a very exposed economy anyway, it was not surprising that the Australian dollar was greatly affected by the huge volatility yesterday. However the price managed to recover over a few hours against the USD to more or less get back to where it was previously, at 0.7220. This level has become important as it was previously the site of a double bottom, and it seems to have now flipped to act as resistance. While we have plenty of obvious resistance above, it is very difficult to identify likely support, as we spiked yesterday all the way down to 0.7030. If anything, this suggests that if we get down to the key psychological level of 0.7000, it will be likely to be very supportive.
Concerning the AUD, the Governor of the RBA will be speaking today at the National Reform Summit. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.