AUD/USD Forex Signal: Bullish Breakout

Adam Lemon

AUD/USD: Key resistance level at 0.6579

Yesterday’s signals were not triggered, as there was no bearish price action when any of the resistance levels were reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6579.

  • Place 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

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6515.

  • Place 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.

AUD/USD Analysis

I wrote yesterday that although the technical picture had become more bearish due to the symmetrical bearish price channel, I was still prepared to take trades from reversals at any trend line or horizontal level.

This was at least enough to keep out of trouble, but no such trades set up. Instead, we saw the price begin a strong bullish move that produced a smooth and firm bullish breakout above the price channel, and the printing of new support at 0.6515.

We may see the resistance at 0.6579 hold if it is reached, at least for a while, but overall things here look bullish, in line with the medium to long-term bullish trend.

I will take a bullish bias today if we get a retracement to 0.6515 and a bullish bounce from that level.
AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm London time.

About the Author
Adam Lemon

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

Currency Pairs:
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