AUD/USD Forex Signal: Weakly Bullish

Adam Lemon

Bulls are beginning to get the upper hand, but I still cannot be bullish until the price has been established above the resistance at 0.7217 which remains very significant.

AUD/USD: Bulls need to break above 0.7217

Yesterday’s signals were not triggered, as none of the key levels were hit.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7183, 0.7139, or 0.7121.
  • 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 0.7217 or 0.7255.
  • 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 the key levels of 0.7139 and 0.7217 would again hold over the course of today and will be more powerful still as none were hit yesterday.

Therefore, I was ready to take a long trade from a bullish bounce off 0.7139 or a short trade from a bearish bounce off 0.7217.

I was correct about the levels holding over the day as none have been reached. However, we now begin to see a small but significant bullish change to the technical picture with a breakout above a new higher support level at 0.7187.

This suggests that bulls are beginning to get the upper hand, but I still cannot be bullish until the price has been established above the resistance at 0.7217 which remains very significant.

I will take a bullish bias today if we get two consecutive hourly closes above 0.7217, up to 0.7255 only.

It seems increasingly likely that the dull Forex market will only come to life tomorrow as rumors and comments arise from the Jackson Hole Symposium during the New York session.

AUD/USD

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