AUD/USD Signal Update
Last Friday’s signals were not triggered as there was no bullish price action when the price reached 0.7274.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered only before 5pm New York time.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the bullish trend line currently sitting at about 0.7245.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next very definite reversal off the forming bearish trend line currently sitting at about 0.7325.
Place 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
AUD/USD Analysis
The support level that seemed to be forming nearby was rubbed out on Friday as the price broke down through it. We are now left with several horizontal support levels at points below but not really any horizontal resistance levels above. Instead, we appear to be forming a consolidating triangle from which it should be possible to trade breakouts or rejections at the trend lines. I definitely prefer the lower, supportive trend line, because it has already had two touches and has formed over a longer period of time than the upper one.
There are no high-impact releases due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 1:30am London time.