My previous AUD/USD signal on 10th February was not triggered.
Today’s AUD/USD Signals
Risk 0.25%
Trades may only be taken prior to 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.7134, $0.7213, or $0.7248.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Review 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.7085, $0.7053, or $0.7034.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 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
In my previous AUD/USD forecast one calendar month ago, I was expecting an up day, and this is what we got, although the price never reached one of my key support levels to trigger the long trade entry which I was looking for.
The technical picture now has become more bullish after several weeks of consolidation, which has been mostly because both these currencies are relatively strong. The AUD is the only major currency (apart from the Japanese Yen) backed by a central bank which is looking to hike rates.
The ascending price channel study which I have drawn as a linear regression analysis within the price chart shown below, shows a fairly steep rate of ascent.
The test for bulls is going to be what happens when the price reaches the key resistance level at $0.7134 and the three-year high just a few pips above that. If the price can hold a bullish breakout there, it has the room to keep rising to $0.7213 at least quite quickly.
However, I think such a breakout will probably not happen before the US CPI (inflation) data is released at the start of the New York session tomorrow.
I will be happy to take a long trade if we get two successive hourly candlesticks closing above $0.7150 before tonight’s New York close, without either showing large upper wick, and with the second closing higher than the first.
(image10032026audusd)
There is nothing of high importance scheduled today concerning either the AUD or the USD.
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