AUD/USD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered as the bullish price action at the support level of 0.7527 was too slow to trigger a long trade entry.

Today’s AUD/USD Signals

Risk 0.50%.

Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.

Long Trade

Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7494.
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 0.7527 or 0.7543.
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 I had no directional bias on this pair and that I saw better opportunities as likely to arise in other currency pairs. This turned out to be a good approach. The risk-off sentiment which has made itself felt concerning Italian debt has also been felt in this currency pair, with the price breaking bearishly out of the triangle shown in the price chart below and printing ne lower resistance levels, including flipping the former support at 0.7527 to new resistance. I think the price is likely to remain below 0.7527 for a few hours at least but it might find support starting at the big psychological round number of 0.7500.

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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