AUD/USD Forex Signal

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AUDUSD: Bullish but running into strong resistance

 

Yesterday’s signals were not triggered, as the bullish price action took place below the support level I identified at 0.6884.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas 

⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6927, 0.6940, or 0.6955.

⦁ 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 0.6877, 0.6855, or 0.6845. 

⦁ 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 the AUD was basically one of the strongest currencies right now. However, I saw the area of resistance which begins at 0.6927 as likely to hold for a while. This was a good call, and I also noted that the RBA Rate Statement could give this pair some stronger direction which has also happened. Unfortunately, the bullish bounce was lower than I had expected.

The RBA hinted earlier in their Rate Statement that there will be no more rate cuts, and this has boosted the AUD quite strongly. At the time of writing, the bulls are pushing the price up and knocking at the resistance at 0.6927. I’d be careful of taking any short trades in this area until the price cools off over several hours. However, it is a long-term pivotal area, so we could well see a big bearish turn here.

If the price can get established above 0.6955, that would be a bullish sign and suggest a continuation to the big round number at 0.7000. AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.