AUD/USD Forex Signal

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AUDUSD analysis: Bearish retracement to 0.7000 area

Last Thursday’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 entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Long Trade

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6976.

  • 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

  • Short entry 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 last Thursday that I would take a cautious bullish bias today up to 0.7047 if the price could close above 0.7000 for three hours consecutively later. This would have given a long trade with a maximum profit of 23 pips, so it was a good call.

The price has pulled back from its gapped-up high it opened at upon the start of this week. However, the nearest support at 0.6991 has continued to hold up, which is a bullish sign. This may not be the end of the medium-term bullish trend yet, but I would prefer to enter a long trade from a bounce at 0.6975 instead of 0.6991.AUDUSDThere is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm 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.