AUD/USD Signal Update
Yesterday’s signals may have produced a losing long trade following the bullish engulfing candle formed at 0.7274. There was no bullish price action at 0.7234.
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.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7200.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7166.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 3
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7143.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7274.
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.
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
There are two interesting things going with the Australian dollar. Firstly, this pair saw the level of 0.7274 flip from support to resistance, which is normally a reliably bearish sign. Secondly, although the Australian dollar has been falling, the New Zealand dollar is holding up much better, which suggests that for the moment the high positive correlation between the two currencies is being uncoupled for some reason.
When these factors are added to the strong recent overbought conditions, it suggests that this pair will probably have further to fall. However apart from 0.7274, it is hard to see where a good short entry might be at the moment.
Of course, there may be good support at several levels not far below, and there are high-impact news items due later concerning both currencies, so anything could happen.
Regarding the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate data at 1:30am London time.