AUD/USD Signal Update
Yesterday’s signals expired without being triggered as the bearish price action unfortunately took place above 0.6909.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am New York time and 5pm Tokyo time.
Long Trade 1
* Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6770.
* 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.
* 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
* Short entry following a bearish price action reversal on the H1 time within the zone between 0.6909 and 0.6932.
* 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.
* 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 2
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7000.
* 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.
* 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
I wrote yesterday that this pair has a key resistance zone that tops at about 0.6927. In fact the high was reached before that before the pair started to fall again with some strength back in line with the prevailing longer-term trend. The AUD is adversely affected by falling commodities prices and especially by Chinese economic problems, so it has been a great currency to be short of lately.
There are tentative signs now of a possible double bottom forming at 0.6828 but I see really key support at lying below there at 0.6770.
Concerning the USD, there will be releases of Building Permits and CPI data at 1:30pm London time, followed later by Crude Oil Inventories at 3:30pm. There is nothing due regarding the AUD.