AUD/USD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 0.7642.
Today’s AUD/USD Signals
Risk 0.75%
Trades may be entered between 8am New York time and 5pm Tokyo time.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7623 or 0.7569.
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 ride.
Short Trade
Short entry 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 0.7750.
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 ride.
AUD/USD Analysis
The price fell off earlier but is recovering, and overall the pair is trading fairly bullishly and looks comfortably established within a wide, bullish channel. I have adjusted the closest probable horizontal support to 0.7645 and also 0.7623 as a new level not far below that. The lower channel trend line is also rising quite steeply, and if the price survives above this area when it all becomes confluent, it should become quite powerful.
The RBA will not want to see the price extend much beyond 0.7700 but it is unclear whether they will be able to talk the price down again without an actual interest rate cut.
Concerning the USD, there will be releases of Retail Sales, Core Retail Sales and PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Regarding the AUD, at 4:30am there will be releases of Employment Change and Unemployment Rate data.