AUD/USD Forex Signal

Yesterday’s signals produced a long trade from the bullish pin candlestick which formed during the Asian session rejecting both the support levels at 0.7598 and 0.7577.

Today’s AUD/USD Signals

Risk 0.50%.

Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.

Long Trades

• Long entry following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7577.

• 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 0.7702.

• 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 it looked very likely that the price would fall further, and it did, so my bearish bias worked out well. However, there has been a bullish development, with the two support levels marked in blue in the price chart below holding strongly, with an hourly pin candle which rejected them both very precisely. The price is struggling to rise but recent action is certainly slightly bullish, even though the Australian inflation data which was released a few hours ago was slightly lower than expected. I think the price will not fall much further over the course of today but is instead most likely to consolidate above the support with a slightly bullish bias. The long trade off the support is a “long shot”, it would probably be best to make this a very small position and shoot for a high target as it seems likely to be a “long tail” trade

Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time. It is a public holiday in Australia.