AUD/USD Signal Update
Yesterday’s signals produced a losing short trade off 0.7642 late in the previous Asian session.
Today’s AUD/USD Signals
Risk 0.75%
Trades may be taken from 8am New York time until 5pm Tokyo time.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7642 or 0.7569.
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 run.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the upper channel trend line, currently sitting at about 0.7720.
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 run.
AUD/USD Analysis
There have been important technical developments over the past 24 hours, the net result of which is to present a much more bullish picture. There is a new supportive trend line from the previous swing low at 0.7500 which when extended forms a channel along with the upper line formed from a triple tap last week. Even more importantly, we have invalidated restrictive, bearish trend lines, and broken up past two formerly resistant levels, as well as the round number at 0.7600.
There is no really clear resistance overhead. Of course 0.7700 might be difficult to clear, but the next key level is not until 0.7860, so the price could now easily run to 0.7700 and beyond. A fast move up to the upper trend line should give good odds for some kind of short trade.
It 0.7642 survives as support over the near future, that is going to be an even more bullish sign.
There is nothing due today regarding either the AUD or the USD.