AUD/USD Forex Signal

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AUDUSD: Consolidating between 0.6927 and 0.6877

 

Yesterday’s signals were not triggered, as none of the key levels given were ever reached.

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 0.6906, 0.6927, 0.6940, or 0.6955.

⦁ 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 0.6877, 0.6855, or 0.6845. 

⦁ 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 I’d be careful of taking any short trades around 0.6927 until the price cooled off over several hours. However, it is a long-term pivotal area, so we could well see a big bearish turn here.

It seems I was overly cautious as the price turned bearish at 0.6927 rapidly. We now have an obvious consolidation pattern between 0.6927 and 0.6877. Additionally, we can draw a new lower resistance level at 0.6906, but it looks weak so don’t put much weight on it.

As it is likely to be a quiet day today in the market, the best approach would be to trade any bounce rejecting the levels at either 0.6877 or 0.6927. 

I take no directional bias on this currency pair 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.