AUD/USD Forex Signal: Bullish Breakout Failing

Adam Lemon

The mixed employment data we saw released in Australia a few hours ago has failed to boost the Australian Dollar.

AUD/USD: Market risk sentiment less clear

Yesterday’s signals were not triggered as there was no bullish price action when 0.6991 was first reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8 am New York time Thursday to 5 pm Tokyo time Friday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6963 or 0.6926.
  • Place the stop loss 1 pip below the lowest recent price.
  • Adjust 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 ride.

Short Trade Ideas

  • Go short immediately upon the next touch of 0.7109.
  • Place the stop loss 1 pip above the highest recent price.
  • Adjust 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 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 despite my focus on the round number at 0.7000 I would be happy to take a long trade later if we had gotten a retracement to 0.6990 and a bullish bounce there, once the price was also back above the 0.7000 level.

This never set up, and the bullish situation yesterday where the price was rising quite firmly up above 0.7000 seems to have fizzled out.

The support level near 0.7000 that we had yesterday has been invalidated.

The mixed employment data we saw released in Australia a few hours ago has failed to boost the Australian Dollar.

We have a short-term bearish head and shoulders pattern that will be completed if the price breaks above 0.6980.

It is looking more likely now that the price will move down to the next support level at 0.6963.

I will still take a long trade if we get a bullish bounce off that level.

AUD/USD

Concerning the USD, there will be a release of Retail Sales data at 1:30 pm London time. There is nothing of high importance scheduled today concerning the GBP.

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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