AUD/USD Forex Signal

Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7510.

Today’s AUD/USD Signals

Risk 0.50%.

Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.

Long Trade

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7400 or 0.7375.

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

• Move 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 Trades

• Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7479, 0.7510, or 0.7580.

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

• Move 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 last Thursday that the recent failure of the Australian Dollar to strengthen against the USD was a bearish sign. This was a great call as the Australian Dollar has plummeted since then, creating a completely bearish technical picture with a dominant long-term bearish trend. Last week’s closing price was the lowest weekly close in over one year.

It would be foolish not to take a bearish bias when the USD is the strongest currency and the AUD one of the weakest. The price has been struggling to rise above the nearest resistance level at 0.7453 over recent hours but has failed to make the break. The longer it remains below that level the more bearish the picture will become although I would not be nervous for bears until the price is able to break above 0.7479.

I heave a bearish bias today. There is key central bank data due for release later which probably will not produce strong price movement but might have a meaningful impact.

There is nothing due concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.