AUD/USD Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 0.7250.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York to 5pm Tokyo times today only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between of 0.7172 and 0.7150.
* 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.
* 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 2
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7072.
* 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.
* 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7279.
* 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.
* 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 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7381.
* 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.
* 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
This pair is currently behaving in a very “technical” fashion and so technical traders should be looking for opportunities here. There is a mildly bullish long-term trend that keeps re-asserting itself just when it looks as if it has disappeared. The chart below shows a move up since early
November that is currently in a deep retracement. There is a clearly defined bearish trend line that is currently containing this wider move up along with a zone of resistance that stretches up to 0.7291. A break up above there suggests another impulsive move would be due, especially as there is a zone of quite strong support below at 0.7172. It seems like there is going to be a classic fight between bulls and bears over the ground between 0.7150 and 0.7279.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of CPI data at 1:30pm London time.