AUD/USD Forex Signal: Evenly Balanced

Adam Lemon

AUD/USD: Bulls have slight advantage

Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level at 0.7117 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7090, 0.7070, or 0.7046.
  • 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 0.7150, 0.7176, or 0.7204.
  • 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.

AUD/USD Analysis

I wrote last Thursday that the price was packed in between several support and resistance levels quite close by with neither bulls nor bears really having a strong advantage.

I was less confident this week would be an up week, which I was wrong about.

I was not wrong about neither bulls nor bears having a clear advantage although the technical picture is marginally more bullish than it was. I think this is boosted slightly by the fact there is still a long-term trend in force in this currency pair.

This currency pair has emerged this year as a key barometer of risk sentiment, with the AUD being boosted in risk-on environments. At the moment, markets are seesawing backwards and forwards, and at increasingly low volatility, which means that right now is probably not a great time to be trading this pair.

As I take a very weak bullish bias, I am prepared to take a long trade if we get a strong bullish bounce at the support level identified at 0.7090.

AUDUSD

There is nothing of high importance due 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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