AUD/USD Forex Signal
|Last Thursday’s signals were not triggered, as none of the key levels specified were reached during that session
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time today.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7147 or 0.7100.
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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 Trade
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7175 or the bearish trend line shown in the price chart below which currently sits at about 0.7205.
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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 last Thursday that the level at 0.7147 looked very likely to be pivotal. If the price continued to advance and make higher highs after the New York open I was ready to take a bullish bias, alternatively if it bounced bullishly again at 0.7147, also. I was correct as the price broke the highs later that day and advanced quickly as high as 0.7220.
The dominant technical feature now is the bearish trend line which is keeping the price below 0.7200, aided by the new lower resistance at 0.7175. However, there is solid support at 0.7147. I am generally nervous to trade this pair, but I think the best move which might set up later would be a strong breakdown of 0.7147 which could then see a further fall to 0.7100.
There is nothing important due regarding either the USD or the AUD. It is a public holiday today in the USA.
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