AUD/USD Forex Signal: Bullish Breakout Past 0.7000

Adam Lemon

If the resistance levels nearby are hit later, scalpers may be able to grab some quick short pips from the likely profit-taking there.

AUD/USD: New 1-year high prices

Yesterday’s signals were not triggered, as none of the key levels identified have been reached yet.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7035, 0.7016, or 0.7004.
  • 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 following bearish price action on the H1 time frame immediately upon the next touch of 0.7109 or 0.7118.
  • 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 although the price was now holding up above the support level at 0.6963, this bullishness looked extremely weak, so I would be more bullish once the price got established well above 0.7000.

This was a great call as we finally see this decisive break and establishment above the 0.7000 area, evidenced by the new support levels we can draw just above 0.7000 where little hurdles of resistance were overcome.

The price is now advancing with strong momentum to reach new 1-year high prices, after overcoming the big round number and psychological level. These are bullish signs.

We are seeing a weak USD and stronger risk-on sentiment, and that should keep pushing the price up here over the short term.

I will be very happy to take a long trade in this pair if there are retracements to any of the support levels above 0.7000 with fast, firm bullish bounces.

If the resistance levels nearby are hit later, scalpers may be able to grab some quick short pips from the likely profit-taking there.

AUD/USD

There is nothing of high importance scheduled 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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