AUD/USD Signal Update
Last Monday’s signals might have given a long trade off 0.7800 which unfortunately broke even due to being stopped out by news-related volatility.
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
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7802.
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.
Short Trade 1
Short entry following bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.8027 and 0.8073.
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
I wrote last Monday that “it could be nice to already be long off 0.7806 when that news is released” and so it proved to be. Even though there was a rate cut, the RBA’s stance on that has made the AUD the prime mover this week and this pair has moved up nicely.
The price is now approaching the key 0.8000 level and the next big test will be whether it can break up through and past the zone of resistance above that.
There may be local resistance at 0.7977, which the price seems to be struggling with right as I type this, so some pull back from here downwards would not be a surprise.
There are high-impact events scheduled today concerning both the AUD and the USD. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time. Later the Chair of the Federal Reserve will be speaking at a Panel Discussion commencing at 2:15pm. After Australia opens, there will be Employment Change and Unemployment Rate data releases at 2:30am.