AUD/USD Forex Signal: Still Bullish

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AUD/USD: Pivotal point at 0.6094

Yesterday’s signals were not triggered as there was no bullish price action at 0.5958.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6094 or 0.6268.

  • 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 0.5880.

  • 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 recent risk recovery which had just boosted the AUD was quite likely to run out of steam soon, so I preferred to look for short trade entry opportunities. No resistance level was hit, but I was right about the direction being downwards, although the price has made a firm recovery in recent hours and got back to where it was.

Despite the short-term bullishness, I still see the resistance at 0.6094 as likely to hold, so a short trade from a bearish reversal there is likely to be the only good opportunity we might get today.

Volatility in this pair is still relatively strong, as it is in all the commodity currency pairs, so skilled traders might trade the swings in either directions on shorter time frames.There is nothing of high importance scheduled for today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 12:30pm London time.AUDUSD

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