AUD/USD Forex Signal: Bulls and Bears Evenly Matched

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AUD/USD: Consolidating above 0.6700

Yesterday’s signals were not triggered.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Thursday until 5pm Tokyo time Friday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6735 or 0.6781.

  • 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 Idea

  • Long entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6706.

  • 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 it made sense to remain bullish and look for a long trade at 0.6737 today. This wasn’t a good call as it produced a losing long trade.

The AUD has been hit by the renewed concern over the coronavirus epidemic in China. The AUD is especially sensitive to general risk-off sentiment and also to China so it suffers a double hit but may bounce back.

Technically bulls and bears are very evenly matched within a relatively tight price range, so apart from the chance for a quick scalp from a bounce off a key level, I would avoid trading this currency pair today.AUDUSDRegarding the AUD, there is nothing of high importance due today. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm 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