AUD/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at either of the key resistance levels given.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hours period.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7723.
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.
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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7651 or 0.7636.
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.
AUD/USD Analysis
This pair was already coming up off the key support level at 0.7563 when it was boosted during the Asian session by better than expected Chinese economic data. China has a huge impact upon the Australian economy. The RBA also did nothing to weaken the AUD, so the result has been a strong rise in this pair over recent hours. The fact that the USD is also a little weak – or at least, not especially strong – is helping.
Having said that, if the price does peak here, we have simply made another major lower high, and a bearish trend line could even be drawn connecting them. So there is not reason not to think yet that the price will go on to break up above 0.7700 instead of falling back into its range.
If you want to be bearish on the USD, this is definitely the pair to pick to do that, as it has been for a while.
Regarding the AUD, there will be a release of Building Approvals data at 12:30am London time. Concerning the USD, there will be a release ISM Manufacturing PMI data at 2pm.