AUD/USD Forex Signal - 20 June 2016

AUD/USD Signal Update

Last Thursday’s signals produced a very profitable long trade following the rejection of the identified support level at 0.7309. It would probably be a good idea to take most of any remaining profit off the table.

Today’s AUD/USD Signals

Risk 0.75%

Trades must be entered between 8am New York time and 5pm Tokyo time only.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7549.

  • 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.

  • Take off 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7375, 0.7309, or 0.7260.

  • 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.

  • Take off 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 is becoming more interesting and more bullish, with the surge in risk sentiment seeing the price reach a level not far from the key 0.7500 handle. Above there, I would be inclined to become long-term bullish on this pair.

Note how the gap up was just above a former strong resistance level at 0.7421 – as is so often the case with weekend gaps. As there is a gap below, I cannot really see this as potential support. I expect the gap will probably fill, and a new key support level at 0.7375 will come into play.AUDUSD

There is nothing due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.

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.