AUD/USD Forex Signal: Bullish as Biden Closer to Win

Risk-on sentiment recovering firmly.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time Thursday and 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7204 or 0.7137.

  • 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 0.7248, 0.7281, or 0.7310.

  • 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 yesterday that due to anticipated volatility in the absence of any official election result in the U.S. presidential race, the best approach would probably be in trading any reversals from price extremes such as 0.7204 or a higher resistance level, or a long trade from a bullish reversal at 0.7025 or 0.7000.

This was good enough to keep out of trouble as although the former resistance level at 0.7204 was exceeded, there was no bearish price action there to justify getting into a short trade.

The picture is simply bullish, the price is not hitting new long-term highs but has risen firmly over the past day on improving global risk appetite which has been helped by the fact that it seems very likely that Biden will be the winner of the U.S. presidential election, although there is still a real chance of a Trump victory after recounts in key states.

I will take a long trade from any bullish bounce which happens today at an identified support level. I see higher prices as likely, but I will also take a bearish reversal at 0.7248 very seriously as that is confluent with the psychological quarter-level at 0.7250.

AUD/USD

Regarding the USD, counting and result releases are continuing in the U.S. presidential election, and the FOMC Statement will be released at 7pm London time followed by the usual press conference half an hour later. Concerning the AUD, the RBA will be releasing its Monetary Policy Statement at 12:30am.

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.