AUD/USD Signal Update
Last Thursday’s signals expired without being triggered as although the price did reach 0.7800 there was no suitable bearish price action reversal there.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the next retest of the broken bearish trend line currently sitting at around 0.7725.
Put 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 run.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next failed test of the zone from 0.7900 to 0.7938.
Put 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 run.
AUD/USD Analysis
As I had thought might be the case, the breakout above the trend line last week did hold bullishly, although it ran into an area of some resistance around the 0.7800 level which I had also thought might be stronger than it in fact turned out to be.
It seems clear that we have some bullish intent in this pair, but there should be stiffer resistance at the next round number of 0.7900. If we were to go straight up there now, it would probably make an excellent short trade.
It will also be possible to go long again if the next trip down gives another bounce off the broken bearish trend line.
There are high-impact events scheduled today concerning the AUD but not the USD. At 5:30pm London time the Governor of the RBA will be speaking at a conference. Later at 2:30am, the RBA will release its latest Monetary Policy Meeting Minutes.