AUD/USD Forex Signal
|Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.
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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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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247 or 0.7275.
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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
I wrote yesterday that I expected to continue to see the price consolidate between 0.7165 and 0.7250, so trades off reversals at either nearby support or resistance levels could work with conservative profit targets. This was a good call as the price has remained within this area. There is a slow, slight short-term bullish movement, but the bulls are unable to get the price to even touch 0.7250 let alone push it above there. I do not see any reason to change my approach here, which is to wait for a reversal at 0.7250 for a short trade entry, but I have no faith such a short would run very far. Conversely, a sustained break above 0.7275 would be a bullish sign. Beyond that, I have no directional bias and I do expect there to be better trading opportunities arising in the major Forex currency pairs.
There is nothing important due today concerning either the AUD or the USD.
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