AUD/USD Signal Update
Yesterday’s signals may have produced a short trade entry following the bearish rejection of the level at 0.7250. Although this would be in a small amount of profit at the time of writing, it looks too early to be short so I would exit from such a trade and wait for another opportunity which might come.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7250, 0.7309, or the trend line which is currently sitting at around 0.7260.
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
If you look at a long term chart of this pair, you can see that there is a definite strong downwards trend, but that its speed has slowed almost to a standstill, and as the price is now threatening 0.7250, we are coming quite close to making the first significant higher high for a long time. This is a signal of a possible trend change approaching.
However the trend downwards is fairly meaningful, so there could be a bearish reversal soon any time even if 0.7250 is broken to the upside. The resistance level at 0.7309 looks as if it could be a good candidate for that.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Later, concerning the AUD, there will be a release of GDP data at 2:30am.