AUD/USD Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 0.7672.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7623.
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 picture is complicated with this pair. The price opened for the week with a fairly strong gap down below the supporting trend line of the channel. The trend line may still hold, it is being retested at the time of writing, but it may also become invalidated. However we have a new short-term bearish trend line above providing a potential cap at around 0.7730, and we also have a new short-term bullish trend line that may provide support not too far below, at around 0.6640. Below that we have a solid, tried and tested horizontal level that is quite likely to provide support at 0.7623, and at the moment, this is the only level at which I am looking for a trade. The coming day or two should provide more guidance regarding which trend lines will survive and which will become invalidated.
There is nothing due today regarding the USD. Concerning the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.