AUD/USD Forex Signal: Bullish Advance

Adam Lemon

Aussie remains strong after RBA minutes.

Yesterday’s signals were not triggered as none of the key support or resistance levels were reached before the end of the Tokyo session.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7300, 0.7280, 0.7263, or 0.7245.

  • 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.

  • Remove 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 0.7340, 0.7361, 0.7379, or 0.7395.

  • 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.

  • Remove 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 yesterday that the technical picture was only weakly bullish because the price had struggled to trade much above 0.7300. Therefore, I was only looking to take a long trade from a bounce at 0.7245, or a short trade from a bearish reversal at 0.7340.

This was a good call as the price retreated almost to the exact pip from the resistance level at 0.7340.

Nevertheless, the action has been bullish, and the technical picture remains broadly bullish, with the U.S. dollar mostly weaker and the AUD rising on risk-on global sentiment, even though the pace of the rise is neither strong nor fast. Maybe it is noteworthy that the AUD remains quite strong even though the RBA held out the prospect of further stimulus in its meeting minutes which were released a few hours ago.

I will be happy to take a long trade from any bullish bounce at any of the identified support levels, but I note that we may be seeing a significant bearish double top at 0.7340. If the price can get established above 0.7340 later, that would make the technical picture much more bullish.

AUD/USD

Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time. Regarding the AUD, the Governor of the RBA will be giving a minor speech at 10pm.

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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