AUD/USD Forex Signal
|Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached 0.7374.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over 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 touch of 0.7260, 0.7230, or 0.7207.
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Place the stop loss 1 pip below the local swing low.
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Adjust 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 Trade
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7322, 0.7348, or 0.7382.
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Place the stop loss 1 pip above the local swing high.
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Adjust 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.
I wrote last Thursday that although the picture looked more bullish, the price was still within a long-term consolidation and so the pair was best avoided. In fact, the price turned strongly bearish and began to fall, but it was due to the Turkish crisis strengthening the Dollar and not really due to anything happening with either of the currencies within this pair.
The price action here is like all the U.S. Dollar pairs – new 1-year highs with a strong Dollar beginning to flatten out over the short term. I think there will be a bottom here and the price will not fall significantly further, because we have a cluster of support levels here between 0.7200 and 0.7260, and the major psychological level of 0.7250. Nevertheless, it is probably too early to get long, so it may be better to stand aside again here, due to the long-term bearish trend.
There is nothing important due today concerning either the AUD or the USD.
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