AUD/USD Forex Signal

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Yesterday’s signals were not triggered as there was insufficiently bearish price action at the resistance levels of 0.6963 and 0.6986.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time Tuesday until 5pm Tokyo time Wednesday.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6941 or 0.6904.
  • 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 0.7047.
  • 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 the picture had become more bullish which could be seen from the fact that the price was able to get established above 0.6937 although I moved that up a little to 0.6940 as a flipped level.

I also noted another bullish sign: the AUD’s advance while stocks were selling off and money is flowing into safe havens such as the Japanese Yen and Gold, which was unusual and suggested strength in the AUD.

This was a good analysis as the price has continued to advance and respect all the technical levels, flipping 0.6963 from resistance to new higher support. However, the price is still contained by the resistance at 0.6986. I would take a bullish bias today if we get two consecutive hourly closes above 0.6986 which would suggest a rise to the key 0.7000 round number and beyond, with enough room for the price to rise until it reaches the next resistance level at 0.7047.

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Concerning the AUD, the Governor of the RBA will be speaking at 10:30am London time, and there will be a release of GDP data at 2:30am. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm 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.