AUD/USD Signal Update
Yesterday’s signals produced a profitable long trade following the bullish break of an inside candle off the support identified at 0.7314.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7274.
- 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 0.7442.
- 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
The pair fell through the first support level identified yesterday, before finding support at the slightly lower level of 0.7274 and rising again. However, the price could not break the previous major swing high, so it looks as though we have formed a double top, with the price falling again and retesting the same support level.
At the time of writing we are at a crucial moment: it might be that the price bounces up again from 0.7274, but it looks as though we are going to get a breakdown below that level, which would suggest that the price is going to go all the way back down to the next major support, which is at the round number of 0.7200.
There are no high-impact releases due today concerning the AUD. Regarding the USD, there will be a release of Preliminary UoM Consumer Sentiment data at 3pm London time.