AUD/USD Forex Signal - 3 November 2015

By: DailyForex.com

AUD/USD Signal Update

Yesterday’s signals expired without being triggered as there was no bearish price action at 0.7150 and the bearish price action that did occur was above the next resistance level of 0.7200.

Today’s AUD/USD Signals

Risk 0.75%

Trades may be entered between 8am and 5pm New York time today only.

 

Long Trade 1

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7113.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7218.
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.
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 RBA issued its Rate Statement this morning, declining to cut rates any further from their historic current low of 2%. This has led to a range of opinions, with some analysts feeling that the RBA will actually look to being raising rates, while others feel that the approach will be “wait and see” with a further cut not being ruled out yet.

The overall effect has been to strengthen the AUD since the release, which pushed this pair up to an area a little beyond its bearish trend line and resistant round number at 0.7200. Therefore it was a little tricky to get short here, but it does seem that the AUD is just not ready to make that major bullish penetration yet, and we now see the price falling back, although it is quite hard to pick support levels anywhere very close to the current price. It might be that 0.7165 which was formerly resistance may now act as support, but I doubt this level as it has been blown in both directions since it last held. I feel that 0.7113 will be a lot more probable.

If we are able to break up past 0.7218 any time soon, that would be a significant bullish sign.

AUDUSD

Concerning the AUD, there will be releases of Retail Sales and Trade Balance data at 12:30am London time. There is nothing due regarding the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.