AUD/USD Signal Update
Yesterday’s signals produced a good short trade off the reversal from the 0.7220 area. It will probably be a good idea to take further profit if the price does not break below 0.7100 over the next day.
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 entry into the zone between 0.7247 and 0.7283.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.
Short Trade 2
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at around 0.7330.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.
AUD/USD Analysis
We just nudged above the anticipated resistance at 0.7220 before falling sharply yesterday when the positive USD data was released. The USD rise was most dramatic against the Canadian and Australian dollars and there is no doubt that these are the two weakest currencies right now. This is a good long-term short-positioning pair.
We are far from key resistance levels right now, but there are signs we may be moving up now from 0.7100, and it is quite likely there will be local resistance at around 0.7175.
Concerning the AUD, there will be a release of Australian Private Capital Expenditure data at 2:30am London time. Regarding the USD, there will be a release of Core Durable Goods Orders data earlier in the day at 1:30pm.