AUD/USD Forex Signal: Bullish Consolidation Above 0.7248

Adam Lemon

Long-term bullish trend holding.

Yesterday’s signals were not triggered as the bearish price action at 0.7340 was not clear-cut enough to justify a short trade entry on the hourly time frame.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered 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 0.7248, 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.

  • 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 0.7301, 0.7340, 0.7361, or 0.7379.

  • 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 showing an ongoing bullish consolidation above 0.7248. I thought that higher prices were marginally more likely but the support at 0.7248 looked very pivotal. I also thought that trading may be relatively quiet in this currency pair as it was a Monday, and no major news was scheduled concerning either currency.

These were good calls as the price has continued to consolidate above the support level which I identified at 0.7248 which still looks extremely pivotal. Trading was also quiet.

I take the same approach today as yesterday as the quietly bullish situation has not changed. I will be happy to take a long trade today if we get a bullish bounce at 0.7248.

A sustained break below the support level at 0.7248 would be a bearish sign and day traders may want to watch for that and get involved there on shorter time frames if it happens as it will probably happen quickly and might well also end quickly.AUD/USDThere 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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