AUD/USD Forex Signal

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 between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165.
  • 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 Trade

  • Go short following some bearish price action on the H1 time frame  immediately upon the next touch of 0.7303.
  • 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 this pair looked terrible to trade right now, action was a little choppy, very uncertain, and equally far from any key support or resistance levels, of which there were very few. I said I’d avoid trading this pair and I had no directional bias at all. There is little reason to change this analysis, although you could argue that there is a bearish price channel (which I have drawn in the chart below), but it looks very shaky and I have no confidence in it. It is probably best to avoid trading this pair today.

AUDUSD

Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

Concerning the AUD, there will be a release of Private Capital Expenditure data at 12:30am.

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.