AUD/USD Forex Signal: Weakly Bullish Above 0.7248

Adam Lemon

Risk-on sentiment continues to recover.

Last Thursday’s signals were not triggered as the bearish price action took place slightly above the key resistance level identified at 0.7281.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time Monday to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7248, 0.7204, or 0.7137.

  • 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.

  • Adjust 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 0.7310, 0.7340, 0.7361, or 0.7379.

  • 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.

  • Adjust 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 last Thursday that the picture here was simply bullish due to rising pro-risk market sentiment as the U.S. presidential got closer to being called for Biden. I did not get a bounce after a retrace for a long trade. I also thought that the resistance at 0.7248 could be a strong obstacle to a continuing rise in the price but I was wrong about that detail while being broadly correct to look to the bullish side, as the price has remained higher than it was during the early part of last Thursday’s London session.

The technical picture now is showing an ongoing bullish consolidation above 0.7248. The rise in risk sentiment is quite likely to continue this week but may be faltering already as the U.S. stock indices have not yet reached new all-time highs and the price of this risk barometer Forex pair has remained stuck below the round number at 0.7300.

Higher prices are marginally more likely but the support at 0.7248 looks very pivotal. Trading may be relatively quiet in this currency pair today as it is a Monday, and no major news is scheduled concerning either currency.

I will be happy to take a long trade today if we get a bullish bounce at 0.7248.AUD/USD

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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