AUD/USD Forex Signal

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AUDUSD: Very pivotal point at 0.6822

Yesterday’s signals produced a profitable short trade following the inside / doji candlestick on the hourly chart which rejected the resistance level at 0.6822. Any remainder of the trade should be closed out now.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Short Trade Ideas 

⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6822, 0.6862, or 0.6885. 

⦁ 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 0.6798, 0.6769, 0.6754, or 0.6744. 

⦁ 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 if the price could get established above 0.6822it would be a bullish sign.

Alternatively, if the price got established below the support at 0.6809, or let’s say instead the round number at 0.6800, without breaking above 0.6822, that would be a bearish sign. 

It was the second scenario which played out, but as soon as the price got below 0.6800 it changed direction within only an hour or so and came right back up. I was correct in emphasising how central the level at 0.6822 was.

The resistance at 0.6822 continues to look extremely pivotal, even more so now there is an obvious descending trend line reinforcing that price area shown in the price chart below. It will almost certainly be hit today. If we get at least two consecutive hourly closes above that level and the price is above that level also during the first hour that New York opens for trading, I would take a bullish bias on this pair. Bulls should beware of possible resistance in the 0.6840 / 0.6850 area. 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.
Learn more from Adam in his free lessons at FX Academy