AUD/USD Forex Signal: More Bullish Above 0.6584

Adam Lemon

AUD/USD: AUD is a relatively strong currency

Yesterday’s signals were not triggered, as there was no bearish price action at 0.6579.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6584.

  • 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 Idea

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of the zone between 0.6556 and 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.

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AUD/USD Analysis

My analysis yesterday was not very useful.

Looking at the big picture today, although the USD is broadly strong, it has not made much progress here against the AUD, showing that the AUD is one of the stronger currencies. The best potential here is therefore probably going to be on the long trade side over the near future.

The technical picture supports a cautiously bullish approach as the line of least resistance is clearly upwards, as we have a cluster of support levels just below the price now.

I will take a bullish bias if we get a bounce today between 0.6556 and 0.6515 to trigger a long trade entry. If the USD begins to weaken again, this could be a good trade.AUDUSDRegarding the USD, there will be a release of Flash Manufacturing PMI at 2:45pm London time followed by the Chair of the Federal Reserve giving a minor speech at 7:30pm. There is nothing of high importance scheduled today concerning the AUD.

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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