AUD/USD Signal Update
Last Thursday’s signals produced a very profitable long trade following the rejection of the identified support level at 0.7309. It would probably be a good idea to take most of any remaining profit off the table.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7549.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7375, 0.7309, or 0.7260.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
AUD/USD Analysis
This pair is becoming more interesting and more bullish, with the surge in risk sentiment seeing the price reach a level not far from the key 0.7500 handle. Above there, I would be inclined to become long-term bullish on this pair.
Note how the gap up was just above a former strong resistance level at 0.7421 – as is so often the case with weekend gaps. As there is a gap below, I cannot really see this as potential support. I expect the gap will probably fill, and a new key support level at 0.7375 will come into play.
There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.