AUD/USD Forex Signal: Bullish Above 0.5962

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AUD/USD: Price at very pivotal point 

Yesterday’s signals were not triggered as there was no bearish price action at 0.5962 until after Tokyo closed.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.5962 or 0.6094.

  • 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 bullish price action on the H1 time frame immediately upon the next touch of 0.5640.

  • 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 would be wise to stand aside from trading this pair for another day, with the exception of a short trade from another rejection of 0.5795 on a short time frame if that set up. It did not.

The price has risen quite firmly, with the USD pulling back and the most hard-hit assets such as the AUD getting the biggest boost, but this situation is likely to be only short-term.

The price rise is now stalling at the key resistance level of 0.5962 which looks extremely pivotal. The price is likely to either fall from here, or make a strong bullish break above it, with a move down more likely.

I will take a bearish bias if we get a strong rejection of 0.5962 after New York opens later.
AUDUSDRegarding the USD, there will be a release of Flash Manufacturing PMI data at 1:45pm London time. There is nothing of high importance scheduled today for the AUD.

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