AUD/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at either 0.7118 or 0.7133.

Today’s AUD/USD Signals

Risk 0.75%.

Trades can be taken until 5pm Tokyo time Thursday.

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7133 or 0.7118.

• Place the stop loss 1 pip below the local swing low.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• 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 Trade

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7175.

• Place the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• 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 yesterday that we were seeing an extremely evenly balanced picture between the bulls and bears with no real trend. I thought that overall, this pair was clearly best avoided today, although it may be possible to fade a sudden spike to 0.7085 as I saw the most likely strong movement as downwards. This call was completely wrong, with the price rising sharply and strongly as the New York session got underway, with the rise eventually stalling at the resistance level of 0.7175, from where it is now making a bearish retracement.

The situation is more bullish now. If the price can get established above 0.7175 and trade there for a couple of hours, it would be a very bullish sign, as there is plenty of room for the price to rise above that. This scenario is unlikely to happen before the FOMC release later but if it does, I would take a bullish bias.

Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time. Regarding the AUD, there will be a release of Employment Change and Unemployment Release data at 12:30am.