AUD/USD Forex Signal

Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.

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.

Long Trade

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

  • 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 ride.

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 last Thursday that we were likely to see lower prices today. I had a weak bearish bias below 0.7250 if the price was trading below there and the action was bearish shortly after Australia opened for business. That level held, more or less.

The picture now is more bullish as the bearish price channel can be seen in the below chart to have broken to the upside. However, there may be minor resistance at 0.7280.

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.