AUD/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 0.7515.
Today’s AUD/USD Signals
Risk 0.75%
Trades must be taken between 8am New York and 5pm Tokyo times only, over the next 24 hours.
Short Trades
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7576 or 0.7606.
Put 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 Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7420.
Put 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
The chart below shows how the flow has turned around this week after the price made a couple of consecutive higher lows above last week’s low close to 0.7450. The price then really shot up a few hours ago, breaking up past the resistance at 0.7515 and the key psychological level at 0.7500. So far since London opened, it is looking as if the level at 0.7515 has been flipped from resistance to support, so overall the picture is bullish.
It is worth noting that we are not too far away from getting to a price level where the price will be above its levels from both 1 quarter and 2 quarters ago, which would signify a long-term bullish trend. However there is no doubt this has been on the cards for a while, but the AUD is taking its time in getting there, as it keeps getting weighed down by expectations of a further rate cut happening in the foreseeable future.
In the short term, it looks as if we will see 0.7576 at least.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the AUD, there will be a release of CPI data at 2:30am.