By: DailyForex.com
AUD/USD Signal Update
Last Thursday’s signals were not triggered and expired.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York and 5pm Tokyo times today only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the supportive zone between 0.7169 and 0.7150.
* Put 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7293.
* 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.
* 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
Last week I foresaw a move down to at least 0.7169 and as you can see from the chart below, it was finally hit during the previous Asian session. This support zone held almost to the pip and is making a nice V-shape now which suggests upwards movement. The key test will be whether the short-term bearish trend line just above the current price is broken to the upside.
I am prepared for another long even if the price falls back down to 0.7169 right away as I see this zone as very strong support.
Beware of the RBA announcements tonight as they may cause high volatility.
There is nothing due today regarding the USD. Concerning the AUD, there will be a release of the RBA Rate Statement and Cash Rate at 3:30am London time.