AUD/USD Forex Signal

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AUDUSD: Bulls seeking triangle breakout

Yesterday’s signals were not triggered, as there was no bearish price action when 0.6822 was first reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas 

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

⦁ 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 0.6798, 0.6769, 0.6754, or 0.6744. 

⦁ 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.

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AUD/USD Analysis

I wrote yesterday that the resistance at 0.6822 continued to look extremely pivotal, even more so as there was an obvious descending trend line reinforcing that price area. I was ready to take a bullish bias on this pair above 0.6822 but was wary of 0.6840/50 as minor resistance. This was not a great call as the price did get above 0.6822 for a while but came right back down into its previous range, although the overall movement was not very large.

We still have a series of higher lows supported by a trend line, but the level at 0.6822 has become re-established as effective resistance and is confluent with a longer-term bearish trend line, as can be seen in the price chart below.

I still see the obvious potential here as a bullish movement following a breakout above the 0.6830 area. If we get this with some momentum as New York or (even better) Tokyo get underway, I would take a bullish bias.AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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