AUD/USD Signal Update
Yesterday’s signals were triggered with a long trade off the inside candle rejecting the support level identified at 0.7477. The trade reached 20 pips of profit before retreating to break even.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 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 0.7412.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7560.
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
There are signs the price may be bottoming at 0.7477 although I am wary of looking for a new long trade entry here, even though the level may still hold. Above, the next key resistance level looks to be 0.7560, although the resistance may begin earlier at the half number of 0.7550.
Even if the USD turns bearish again soon, with the recent quarter point cut in the Australian base rate, this may not be a good pair to be long of, even though there is a long-term bullish trend over the past several months.
Concerning the AUD, there will be a release of Retail Sales and Trade Balance data at 2:30am London time. Earlier, regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm followed by the ISM Non-Manufacturing PMI data at 3pm and Crude Oil Inventories at 3:30pm.