AUD/USD Forex Signal: More Bearish

Adam Lemon

If we get a firm bullish bounce it will be a kind of bullish double bottom so might provide a valid long trade entry.

AUD/USD: AUD hit by risk-off sentiment

Last Thursday’s signals produced a losing trade from the bullish pin candlestick entry on the hourly chart from the support level identified at 0.6900.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time Monday to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6774 or 0.6683.
  • 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.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6912 or 0.6964.
  • Put the stop loss 1 pip above the highest price made today.
  • Move the stop loss to break even once the trade is 10 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 last Thursday that the technical picture had become less bullish, and we may have seen a long-term double top above the psychologically important round number at 0.7000.

This was a good call insofar as the price has continued to move down from the 0.7000 area, but I also saw bulls as bears as evenly matched which turned out to be wrong.

We have seen a little support in recent hours just above the support level identified at 0.6774 and this may be a mildly bullish sign. If the price retraces to this level and we get a firm bullish bounce it will be a kind of bullish double bottom so might provide a valid long trade entry.

I do not see any potential alternative good trade setups worth taking in this currency pair today.

AUD/USD

There is nothing of high importance due today concerning either the AUD or the USD.

 

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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