AUD/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at 0.7181.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7192 or 0.7129.

  • 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 run.

Short Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7231 or 0.7270.

  • 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.

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 due to the notable recent weakness of the Australian Dollar, trading with a bearish bias is useful, but there was short-term bullish momentum. I was looking ideally for a bearish reversal later after the RBA’s release at either 0.7181 or 0.7231. However, neither scenario has played out, and the picture is now looking more bullish as a new key higher double bottom is printed at 0.7145. The bullish movement of recent hours may be running out of momentum now, so I do not have any directional bias and it looks impossible to forecast with any confidence.

AUDUSD

There is nothing important due today concerning either the AUD or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.