AUD/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at 0.7027.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Thursday until 5pm Tokyo time Friday.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6986.
  • 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 Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7027 or 0.7088.
  • 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 ride.

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.

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AUD/USD Analysis

I wrote yesterday that despite the bearish sentiment from the lower than expected CPI data, there was support above the psychologically important 0.7000 area which had held before and may well hold again until the RBA makes a definite policy change. I thought the price was likely to consolidate above 0.7027.

I was wrong as the price has broken that level and has traded below 0.7000 at a 4-month low price. However, there are signs that the price is unable to remain below 0.7000, which suggests it is going to be a natural support level for the price. There is no doubt with the strong U.S. Dollar the price looks weak, but it still seems that it will be hard for it to break below 0.6986, where it might be a good long-term buy. Therefore, I am wary of short trades except after a pullback, and I might take a bearish bias later at a failure at 0.7027.

audusd

There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm 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. Learn more from Adam in his free lessons at FX Academy.