AUDUSD Forex Signal
|Yesterday’s signals produced a losing long trade from the bullish inside candle which rejected the support level identified at 0.7400.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7343 or 0.7309.
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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 Trades
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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7375 or 0.7400.
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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.
AUD/USD Analysis
I wrote yesterday that it would be foolish not to take a bearish bias when the USD is the strongest currency and the AUD one of the weakest. This worked out well, as the price has continued to fall quite strongly and make new 1-year lows, which is also always a bearish sign. Commodity currencies such as the Australian Dollar are being hit by the increasing threat of import tariffs, which strengthened yesterday upon new American threats. The U.S. Dollar is occasionally eclipsed by the Japanese Yen, but it remains broadly the strongest currency, so there remains every reason to expect still lower prices here. I have a bearish bias today on this currency pair.
There is nothing due concerning the AUD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.
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