AUD/USD Forex Signal
|Yesterday’s signals produced a losing short trade following the bearish pin candlestick which rejected the resistance level at 0.7773, although the area ultimately continued to hold as resistance.
Today’s AUD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7726 and 0.7735, or the next touch of 0.7703.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7775 or 0.7804.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
Yesterday I wrote that there was every reason to remain bearish, with a pattern of lower highs and lower lows clearly visible in the price chart shown below. However, after moving down during the first half of the London session, the price then turned and began to rise even before the FOMC release. The release was bearish for the U. S. Dollar and the Australian Dollar benefitted from that. The bulls have gained the upper hand over the short-term. Note that the resistance level at 0.7775 has effectively held and capped this rise. The bulls will probably make a stand at 0.7725 so a break below that level should signify a resumption of bearish dominance.
There is nothing due today concerning the AUD or the USD.
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