AUD/USD Forex Signal - 12 July 2017

Yesterday’s signals were not triggered as there was no bearish price action at either 0.7629 or 0.7645.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.

Short Trade 1

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7747.
  • 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 ride.

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7645 or 0.7629.
  • 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.
  • 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.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

AUD/USD Analysis

I wrote yesterday that a break above 0.7645 would be a significant development and we have now had this break, which is a bullish sign. I had thought a longer-term downwards movement was more likely than an upwards movement, but that now looks more doubtful. The Chair of the Federal Reserve will be testifying later and that could move the price of the USD everywhere, but putting that aside, the pair now looks more bullish. Poor news for the USD would be likely to boost this pair significantly more than good news would cause it to drop.

AUDUSD

There is nothing due today concerning the AUD. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House Financial Services Committee on monetary policy at 3pm London time, followed half an hour later by Crude Oil Inventories.

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.