AUD/USD Forex Signal: Bulls Aiming for 0.7340 Again

Adam Lemon

The price is now moving quite bullishly over the short term and appears to be heading for the double top at 0.7340 again.

Yesterday’s signals were not triggered as the bullish price action took place below the support levels identified at both 0.7300 and 0.7280.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7274, 0.7263, or 0.7245.

  • 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.

  • Take off 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 0.7340, 0.7363, 0.7379, or 0.7395.

  • 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.

  • Take off 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 as the technical picture remained broadly bullish, with the U.S. dollar mostly weaker and the AUD rising on risk-on global sentiment, I would be happy to take a long trade from any bullish bounce at any of the identified support levels, but I also noted that we may be seeing a significant bearish double top at 0.7340.

This was a reasonably good call as the price fell quite strongly over the last day before bouncing back equally strongly to get back to its earlier area.

The price is now moving quite bullishly over the short term and appears to be heading for the double top at 0.7340 again.

This level looks to be extremely pivotal. It is worth noting that the price has been going sideways here over the medium term, so we have a wide-ranging environment. A sustained bullish breakout above 0.7340 would be a technically significant bullish development and herald the start of a stronger bullish risk-on rally.

I am ready to take a long trade if we get two consecutive hourly closes above 0.7340 followed by a retracement to that level followed by a bullish bounce off it.AUD/USDConcerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am London time. There is nothing of high importance scheduled regarding the AUD.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.