AUD/USD Signal Update
Yesterday’s signals provided a profitable short trade entry following the bearish engulfing candle rejecting the anticipated resistance level at 0.7515.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York and 5pm Tokyo times.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7515, 0.7576 or 0.7608.
Place 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 ride.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon an early break of 0.7493 or the next touch of 0.7420.
Place the stop loss 1 pip below the local swing low.
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 ride.
AUD/USD Analysis
I wrote yesterday that “the outlook for this pair looks more bearish” and so it has proven, as the RBA’s minutes increase expectations of a cut in the AUD rate. We have seen the pair bounce bearishly off the resistance at 0.7515.
However there are signs we may rise from here, as at the time of writing we are forming a double bottom at the key support level of 0.7474. If the price cannot fall and then begins to rise with a general pullback in the USD, we could see some good long pips up for grabs.
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.