AUD/USD Forex Signal
|Last Thursday’s signals were not triggered as the two levels which were hit by the price movement that day did not hold appropriately.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7054 or 0.7039.
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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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Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7123, 0.7139, or 0.7175.
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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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Remove 50% of the position as profit when the trade is 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
I wrote last Thursday that that if the price continued to struggle higher and get established above 0.7112 during the New York session, we would be likely to see still higher prices, although 0.7139 looked likely to hold over the short-term. This was a good call as the price failed to get established above 0.7112 and has gone sideways ever since.
There is no long-term trend in this pair, but the medium-term momentum is with the bears due partly to the strong U.S. Dollar and party due to the RBA’s statement last week which was seen as a little dovish. As such, I would be prepared to take a bearish bias if (and only if) the price makes a strong bearish reversal at any of the resistance levels above. However, it is also worth noting that the price is getting closer to the big round number at 0.7000 and the support levels near to that number could be very firm still.
There is nothing of high importance due today regarding either the AUD or the USD.
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