AUD/USD Forex Signal

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AUDUSD: Dominant bearish trend line broken bullishly

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

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 0.6803, 0.6822, or 0.6862. 

⦁ 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 0.6769, 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 technical picture was still bearish as the medium to long-term descending trend line continued to hold, although we had a bit of a bounce at the first support level at 0.6769. I was ready to be more bearish below 0.6769 and more bullish above 0.6803, but I still preferred short trades from resistance levels here overall.

This was a good call and was enough to at least keep out of trouble, with neither level being reached yet. However, there is a bullish change worth noting: the bearish trend line has been broken passively, by the price refusing to descend below the support level at 0.6769. This creates a more bullish picture, so despite AUD weakness, a better approach might be to look for a long trade at 0.6769 which would be confirmed by a relatively speedy bullish breakout above 0.6803. I would take a bullish bias if 0.6769 gives a bullish bounce first or a bearish bias if 0.6803 gives a bearish bounce first.AUDUSDRegarding the USD, there will be a release of Chicago PMI data at 2:45pm London time. Concerning the AUD, there will be a release of Private Capital Expenditure data at 12:30am.

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.
Learn more from Adam in his free lessons at FX Academy