AUD/USD Forex Signal

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AUDUSD: Price retreats from 10-year low at 0.6745

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

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6829 or 0.6868.

  • Place 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.

Long Trade Idea

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6745.

  • Place 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 the situation technically had become very interesting and significant, with the price close to a 10-year low at 0.6745, which was also confluent with a major psychological level at 0.6750. If the price can get established below 0.6745, I thought it could fall much further very quickly. However, the price never even reached this level.

The Australian Dollar remains one of the weaker currencies over the long-term, despite its recovery over recent hours. I still see the big opportunity to watch for here as a sustained break to multi-year lows below 0.6745. If the price falls again to that area and makes a bullish reversal, a long-term buy could be a great trade – the 0.6750 is a very important pivotal point to watch.AUDUSDThere 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.