AUD/USD Signal Update
Last Monday’s signals produced a losing long trade off 0.7600 followed by a profitable long trade from 0.7568, although the price finally broke down below that level too.
Today’s AUD/USD Signals
Risk 0.50%
Trades must be made between 8am New York time and 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 0.7512, 0.7477 or 0.7412.
* 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 0.7568 or 0.7642.
* 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 RBA is talking down the AUD which had been the primary beneficiary of a weakening USD during recent weeks. The Bank signalled that they may cut interest rates if the AUD continues to rise and this was enough to cause not only a deep bearish pullback within a bullish trend but also we see new key levels flipping from support to resistance. The closest such level is 0.7568 which has held nicely so far this morning in spite of the bullish “V-shape” we saw at yesterday’s low.
There are also several trend lines nearby, and they sit in both directions.
Overall we can expect little movement in this pair until the FOMC release, at which time this should be one of the most interesting pairs to trade off fast spikes to any nearby levels or trend lines.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.