AUD/USD Signal Update
Yesterday’s signals provided a profitable short trade following the bearish rejection of 0.7218 during the earlier Asian session. Possible targets include the first supportive trend line, followed next by 0.7150 and 0.7113.
Today’s AUD/USD Signals
Risk 0.75%
Trades may be entered between 8am and 5pm New York time today only.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7150.
* 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.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7113.
* 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 touch of 0.7218.
* 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
I forecast yesterday that the level at 0.7218 was going to be pivotal, and so it has proved to be.
Technically this pair really looks to be at a crossroads of interest: the price has been contained within a longer descending wedge and has attempted to break out above that upper limit and in this attempt is being held in a much smaller and thinner ascending wedge. Both 0.7218 and 0.7150 look very strong, but a break below the first supportive trend line would suggest a trip down to at least 0.7150. The price will probably remain within this range until the RBA Rate Statement and USD Non-Farms due on Friday.
Regarding the AUD, the Governor of the RBA will be speaking at 10:25pm London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change Number at 1:15pm, followed by Trade Balance data at 1:30pm and then finally ISM Non-Manufacturing PMI and Fed Chair testimony at 3pm.