AUD/USD Forex Signal - 25 July 2017

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.

Short Trade 1

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.8000.
  • Place 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 0.7836.
  • Place 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.

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

The current consolidation pattern has gone on for four days now, and the longer it continues, the more likely it is that the price will finally break below 0.7836 as part of its next major move. The large round number above at 0.8000 may also be very strong and difficult to break. Despite these considerations, this pair is still in a long-term bullish trend, and it makes sense to keep a bullish bias.

AUDUSD

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, followed by a speech from the Governor of the Reserve Bank of Australia at 4:05am.

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.