AUD/USD Forex Signal

Yesterday’s signals produced a profitable long trade from the bullish bounce at 0.7362 and it might be wise to seriously consider closing it out in profit (at the time of writing).

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trades

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7362 or 0.7309.

• 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.

• 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 Trade

• Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7429.

• 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.

• 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 if the price did now continue down to 0.7362, which would be very unlikely, it should make a strong bullish bounce. I was correct about a bullish bounce, although the facts that the bounce has not been very strongly bullish and the level at 0.7362 was reached at all suggest a more bearish picture. However, price movement looks relatively constrained, so there might be better opportunities elsewhere today. I have a weakly bearish bias now below 0.7388.

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.