AUD/USD Forex Signal: Choppy but Weakly Bullish

Adam Lemon

AUD/USD: New 1-year high price made below 0.7200

Yesterday’s signals were not triggered as none of the key levels were reached yet, although the high of the day so far was close to the resistance level at 0.7197.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7121 or 0.7035.

  • Put the stop loss 1 pip below the lowest recent price.

  • Move 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 run.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7197 or 0.7254.

  • Put the stop loss 1 pip above the highest recent price.

  • Move 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 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.

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AUD/USD Analysis

I wrote yesterday that the technical picture looked very weakly bullish above 0.7121.

This was a good call as the price has risen over the past 24 hours while staying above that level, although the rise has been small.

Despite the weakness of the rise, we are still seeing new 1-year highs which is a bullish sign.

There are two resistance levels above, at 0.7197 and 0.7254, both of which could be strong due to their confluence with major round or half numbers – 0.7250 could be an especially strong level.

Technical analysis is not so useful today as we are getting a very important release later from the U.S. FOMC: the monthly statement, which usually has a big impact upon the U.S. Dollar.

The most I can say is that there is likely to be more potential for a bullish than bearish move, if that is supported by the release late in today’s New York session.
AUDUSDRegarding the USD, there will be a release of Pending Homes Sales data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm then the usual press conference half an hour later. There is nothing of high importance due concerning the AUD.

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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