AUD/USD Forex Signal: Bullish Above 0.7150

Adam Lemon

AUD/USD: Recovery in risk sentiment boosting Aussie Dollar

Yesterday’s signals were not triggered, as there was no sufficiently bearish price action when the price first reached either 0.7150 or 0.7182 which were identified as key resistance levels.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken from 8 am New York time Thursday to 5 pm Tokyo time Friday.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7173, 0.7150, or 0.7100.
  • 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

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7229 or 0.7248.
  • 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.

AUD/USD Analysis

I wrote yesterday that the technical picture was looking more bearish with the round number at 0.7100 likely to be the day’s pivotal point. I was looking for a long trade there and saw it as the key tipping point.

I was correct to be implicitly bullish above 0.7100, but 0.7150 as a pivotal point would have been a much more useful and better call.

We have seen quite a firm recovery in risk-on sentiment with reports from the U.S. yesterday indicating a political compromise paving the way for a new economic stimulus package is closer to realization. This boosted the Aussie against the greenback.

We see two new higher support levels forming, but the one that really stands out is 0.7150 and I see this as today’s tipping point.

I will remain cautiously bullish above 0.7150.

I think we may see the resistance at 0.7228 hit today, but I think it will hold until after tomorrow’s non-farm payrolls data release.

AUD/USD

There is nothing of high importance scheduled today concerning the AUD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3 pm London time.

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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