AUD/USD Signal Update
Yesterday’s signals triggered a short trade off the bearish rejection of 0.7048 right at the end of the previous Tokyo session. The trade has not really gone anywhere yet so it might be wise to exit at breakeven when possible or for a small loss.
Today’s AUD/USD Signals
Risk 0.75%
Trades may be taken from 8am New York time until 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 0.6940.
* 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.
Long Trade 2
* Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6827.
* 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 frame immediately upon the next touch of 0.7072.
* 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 “if the price can now hold up above 0.6940 it will be a bullish sign for this pair, although the resistance at around 0.7050 does look formidable.”
This is exactly what has happened, the price has continued to rise quite bullishly but has not been able to crack the zone beginning at 0.7050 which has acted as strong resistance for the past 3 weeks. As it has held a few times and for quite a long time, if we can break up past the top of the zone at 0.7072 it will probably be a very bullish sign. The zone should hold until the FOMC release in any case.
Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm. There is nothing due regarding the AUD.