AUD/USD Forex Signal

|

AUDUSD: Support at 0.6731 pivotal today

Yesterday’s signals were not triggered, as there was insufficiently bullish price action at both 0.6752 and 0.6733.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6769 or 0.6809.
  • 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 Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6731 or 0.6677.
  • Place 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.

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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

AUD/USD Analysis

I wrote yesterday that if the price could get established later below 0.6733, that would be a bearish sign. This was a good call as this level has proven to be pivotal, although I’ve had to adjust it downwards by a couple of pips to 0.6731. I also noted the absence of any real trend and that condition persists.

The New York session is likely to determine whether the support at 0.6731 will hold. There is a choppy but real short-term bearish trend so it may well break down, in which case we might see a stronger move down towards 0.6677. However, bears in that case should watch out for the previous inflection at the 0.6710 level, which might also make itself felt as support at the round number at 0.6700 ten pips below that.

audusd

Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate numbers at 1:30am.

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.