AUD/USD Forex Signal: Bullish Consolidation Above 0.6528

Adam Lemon

AUD/USD: Yet key resistance level at 0.6579

Yesterday’s signals produced a profitable short trade from the bearish hourly pin candlestick which rejected the resistance level at 0.6579.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Wednesday to 5pm Tokyo time Thursday.

Short Trade Idea

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

  • Put 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 Idea

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of the zone between 0.6529 and 0.6515.

  • Put 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.

AUD/USD Analysis

I wrote yesterday that although the resistance at 0.6579 may hold, overall things here looked bullish, in line with the medium to long-term bullish trend.

I was ready to take a bullish bias upon a bounce at 0.6515.

This was a good call overall as the price did reverse at 0.6579 but the support level at 0.6515 has also held.

The price is now in a bullish consolidation between 0.6529 and 0.6579.

There is a long-term bullish trend and the Australian Dollar is benefiting from increasingly firm risk-on sentiment in the market.

For these reasons, I will take a bullish bias today if we get a bullish bounce between 0.6529 and 0.6515, at least until 0.6579.

If the price can get established above 0.6579, that will be a bullish sign.

If the price retests and fails again at 0.6579, that will be a weakly bearish sign.AUDUSDThere is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the RBA will be giving a minor speech at 3:30am 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

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