AUD/USD Forex Signal - 13 March 2019

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Yesterday’s signals were not triggered as the bullish price action took place just below the support level at 0.7065.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time Wednesday until 5pm Tokyo time Thursday.

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7050, 0.7039 or 0.7027.

  • 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

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7117.

  • 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 the most likely scenario was one of higher prices, but the bullish move may be running out of momentum at 0.7080. I also did not see a lot of potential downside because we had such congested support levels (four of them) between 0.7025 and 0.7065.

This was a relatively good call as although the price initially rose higher, it fell as the move ran out of momentum, but most of the supportive area held with a short-term floor at 0.7050.

The picture now is difficult for traders – although the new higher bearish trend line is significant as we have a symmetrical double channel which is shown in the price chart below which is technically significant. The price is currently trapped between 0.7065 and 0.7050. There is a lot of support below above 0.7000 but there is selling too at higher levels, so the next move is hard to predict. I think it will take a while, but the price is bound to eventually rise from here. The sign for bulls to become more confident will be a solid break above that bearish trend line currently sitting at about 0.7080.AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, there will be releases of Core Durable Goods Orders and PPI data at 12:30pm London time.

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.