AUD/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time to 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6992.
* 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
* Go short after bearish price action on the H1 time frame immediately upon the next touch of 0.7194.
* 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.
Short Trade 2
* Go short after bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7245 and 0.7271.
* 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
The supportive trend line has to be re-drawn as the old one has been messed about too much to be valid. For about six weeks now this pair has been grinding up. It definitely has a bid in it but it really looks as if it is just going to fail at some point and drop sharply. Looking at the long-term position, this pair is really neither bullish nor bearish.
The resistance at around 0.7160 is holding though the action is slippery which makes it dangerous. I now see the level very close to 0.7200 as the nearest key and strong resistance.
I see a coming failure at 0.7200 and then a strong drop all the way down to 0.7000 or thereabouts, but it might take a while to happen.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Regarding the AUD, there will be a release of GDP data at 12:30am.