AUD/USD Signal Update
Last Thursday’s signals gave a long entry off 0.7682 which would have ended up being a losing trade.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7550.
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. Take more profit at 0.7689.
Short Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7689.
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.
Short Trade 2
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7805.
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.
AUD/USD Analysis
This pair has been in a strong downwards trend for the past two weeks as the USD strengthens and the AUD weakens across the board. At the end of last week, a key supportive trend line was messed around too much and it has now been removed from the chart below. Having said that, the price does seem to want to consolidate at this level. Should the local floor break down a trip down to 0.7550 would be likely. That whole area from 0.7550 down to the old trend line below it at around 0.7450 is likely to prove to be crucial long-term support and could provide great opportunities for a long-term long trade.
However it seems probable that there is more downside yet. There is crucial news this week for both the AUD and the USD. If both currencies reaffirm their existing bias then this pair will present a good short-term shorting opportunity.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.