AUD/USD Forex Signal

Last Thursday’s signals were not triggered as there was no bullish price action at 0.7105.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7088.
  • 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.
  • Move 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 0.7107 or 0.7144.
  • 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.
  • Move 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 last Thursday that we had a relatively chaotic situation which was hard to trade. I wanted to avoid this currency pair for the time being.

I thought that a sustained break above 0.7130 would be a bullish sign and indicate a more definite and tradable price direction. That was a good call, at least it was useful in staying out of trouble, as the price never was able to get established above 0.7130.

The price is now trapped between support at 0.7088 and resistance at 0.7107, and overall, this pair is still a mess. This pair is best avoided for the time being.

audusd

There is nothing of high importance 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.