AUD/USD Signal Update
Yesterday’s signals produced a small winning trade of 20 pips following the bearish pin bar rejecting the lower band of the resistant zone from 0.7245 to 0.7300.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6992.
* 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.
* 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 after bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7259 and 0.7300.
* Place 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.
* 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
The AUD was strong yesterday and managed to break up above a fairly long-term bearish trend line at 0.7200, moving up to test the resistant zone which began at 0.7245 and seems to have held for now, with the price looking as if it is on its way back down. As such, the possible short trade from here is probably too late to get into, but if the price comes up and makes some kind of new high and fails again above 0.7259, that could be a new opportunity to get short again.
There is likely strong support at 0.6992 and a more risky opportunity to get long also perhaps at 0.7200 with a retest of the broken trend line possibly failing.
If this pair manages to keep going up and become established above 0.7300, it could indicate a long-term bullish trend developing.
There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.