AUD/USD Signal Update
Yesterday’s signals were not triggered, as unfortunately the high of the day was just 3 pips short of the resistance level at 0.7767.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time until 5pm Tokyo time only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7569 or 0.7467.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7723 or 0.7764.
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
Support and resistance levels were behaving as good price markers although not quite precisely enough for this exact forecast. During the Asian session there was a release of Australian CPI data that has made the prospect of a further Australian rate cut in the near future much more likely, so the pair has fallen sharply since then. We can see support flipping to resistance and there is even a level quite close by that so far has behaved this way, at 0.7630.
A recovery in price after such a dramatic movement is usual, but the outlook is much more bearish for the Australian Dollar now, so I doubt it will happen. However the long-term trend is bullish so I would not be using the AUD to long the USD even if the FOMC is very bullish for the USD.
Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed later by the FOMC Statement and Federal Funds Rate at 7pm. There is nothing due concerning the AUD.