AUD/USD Signal Update
Yesterday’s signals produced a profitable long trade off the bullish trend line below.
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 the bullish trend line currently sitting at about 0.7253.
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 0.7200.
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.
Short Trade 1
Go short 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 0.7312.
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 consolidating triangle has continued to hold and narrow. I had thought that reversals off the trend lines would be more probable trades that breakouts and this outlook was rewarded by the bullish bounce we got earlier from the trend line drawn below. I continue with this outlook of fading the trend line hits, although today I am more comfortable taking a short off the upper trend line than a long off the lower one, as the lower one was just hit a few hours ago. Another hit might indicate a breakout to the down side, after which we would look for support at 0.7200.
There are no high-impact releases due today concerning the AUD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.
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