AUD/USD Signal Update
Last Thursday’s signals were not triggered as the price never reached 0.7515 or 0.7662.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the next test of the channel’s lower bullish trend line currently sitting at around 0.7525.
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
Go short following some bearish price action on the H1 time frame immediately upon the next test of the channel’s upper bearish trend line currently sitting at around 0.7765, especially if there is a simultaneous rejection of the resistant whole number at 0.7800.
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
In my forecast last Thursday I saw a good chance of a bullish turn off the bottom of this channel and this proved to be the case, although the trend line was not quite hit, but it can be redrawn to remain valid. The trend line above, although it has been broken, acted as both support and resistance during and after that break, so it also should remain valid.
What we have is the story of a channel which is quite likely to hold, so fading the trend lines look to be the best entries either long or short for the time being.
There are no high-impact events scheduled later today concerning either the AUD or the USD.