AUD/USD Signal Update
Yesterday’s signals produced a nice short trade following the bearish pin candle rejecting the resistance level at 0.7421. It would probably be a good idea to take some more profit off this winning trade as we seem to have reached minor support at around 0.7350.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time to 5pm Tokyo time.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7421 or 0.7549.
Place the stop loss 1 pip above the local swing high.
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.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7309, 0.7260, 0.7230 or 0.7207.
Place the stop loss 1 pip above the local swing high.
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
This pair has been trapped in a trendless state for a while now, which can make it unattractive to trade. One of the advantages of currency pairs in this state though is that key support and resistance levels tend to hold more predictably, meaning that when these levels are rejected with very clear price action they can produce some very probable pips. We have just had this situation as the price failed twice very clearly to push up past the resistance at 0.7421. There is no reason why another retest might not fail as well, even though the price of Gold is making new highs which can sometimes show a high degree of correlation to the Australian Dollar.
There is nothing due today concerning the AUD. Regarding the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.