AUD/USD Forex Signal - 12 June 2019

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AUDUSD analysis: 0.6940 still held by bulls

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 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 0.6940, 0.6904 or 0.6901.

  • 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 0.7047.

  • 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.

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AUD/USD Analysis

I wrote yesterday that it may be that the price would bounce at the lower support level of 0.6940, but overall the price looked very choppy and indecisive, so I made no directional call on this currency pair yesterday.

This was a good call as very little has happened here, within a generally quiet Forex market. The support at 0.6940 is making its presence felt gently. The lack of movement is probably a natural consolidation ahead of major data releases for both sides of this currency pair which we will get over the next 24 hours.

Due to the uncertainty of these releases, I do not have any directional forecast, but I note that the price would seem to be supported between 0.6900 and 0.6940 so I see a bullish reversal somewhere down here as the most probable directional outcome.AUDUSDRegarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. Concerning the AUD, there will be releases of Unemployment Rate and Employment Change data at 2:30am.

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.