AUD/USD Forex Signal

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AUDUSD: Medium-term bearish topping out strengthening

Yesterday’s signals were not triggered, as the bullish price action took place below the support levels identified at 0.6857 and 0.6840.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Wednesday to 5pm Tokyo time Thursday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6850 and 0.6917.

  • Put 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.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6832 or 0.6809.

  • Put 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.

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 although the price action did not suggest that the price was quite ready to fall significantly yet, but a look at the daily chart showed that we seemed to be getting a topping-out and the start of a medium-term bearish turn. However, I thought it best to stand aside over the short-term.

The topping out has continued so I was correct to look for the beginning of a significant downwards move. Much will probably now depend upon how the price reacts at 0.6850 so I see that as today’s pivotal point, with the strongest support level in play likely to be at 0.6809.

I would take a bearish bias if we get a solid reversal following a test of 0.6850, provided the price does not significantly break above it before 8am New York time today.
AUDUSDThere is nothing of high importance due today concerning 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.