AUD/USD Signal Update
Yesterday’s signals produced a losing short trade off the bearish inside bar rejection of the anticipated resistance at 0.7163.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time to 5pm Tokyo time today only.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the broken bearish trend line currently sitting at about 0.7120.
* Place 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.
Long Trade 2
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7072.
* Place 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.
* Move 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 a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7218.
* 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.
* 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
I wrote yesterday that a bullish break of the trend line channel structure looks like an interesting possibility that might occur after a possible USD-negative FOMC release tonight, or at least a release that the market responds negatively to. This is exactly what happened, although the FOMC release was not negative, there was a smallish sell off of the USD and it was not stronger anywhere than in this pair.
It is also notable that the resistance at 0.7163 has not managed to convincingly stem the rise.
This pair looks like being the best place to take advantage of any USD weakness.
There is nothing due today regarding the AUD. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by the Philly Fed Manufacturing Index at 5pm.