AUD/USD Forex Signal - 24 June 2019

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AUDUSD analysis: Bulls winning over short-term only

Last Thursday’s signals were not triggered as neither of the nearby key levels were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time Monday to 5pm Tokyo time Tuesday.

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6940 or 0.6903.

  • 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 Trades

  • 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 last Thursday that there was still short-term bullish momentum in the price, so it seemed probable that there would be still higher prices in this currency pair over the day. This was an OK call although the price did not end the day a great deal higher. In fact, the price respected both the nearby support and resistance levels. On Friday we saw a strong move against the U.S. Dollar everywhere and the AUD was one of the major beneficiaries. I was looking for a reaction once the price broke above 0.6940 and we now have that bullish break. There is certainly bullish momentum, but it is likely to run out of steam due to the long-term bearish trend. However, the price has plenty of room to rise before hitting resistance, and the line of least resistance is certainly upwards. This means that we may well see higher prices today if 0.6940 holds up, but there will probably be better opportunities in other currency pairs right now.AUDUSDThere is nothing of high importance due today regarding either the AUD or the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.