AUD/USD Forex Signal

Yesterday’s signals were not triggered as there was no bullish price action when 0.7089 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trade

• Long entry following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6992.

• 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7089.

• 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 the price had been consolidating and there was a key, well-defined support level at 0.7089 which was likely to be a pivotal level for today. I said that if it broke down, the price was likely to fall further; if it held, we could get another 50 pip rise in price. This was a good call as the level was pivotal, and after it broke down yesterday, the price fell by another 35 pips or so. The price has now pulled back and the level seems to have cleanly flipped to become new lower resistance. Markets are in a mode now where money is flowing into safe havens and away from risky assets, and as long as this persists, it should be bad for the Australian Dollar, although asset such as Gold and the Japanese Yen are getting stronger flows than the U.S. Dollar.

I will be bearish if the level at 0.7089 holds as resistance over the coming hours into the New York session.

There is nothing important due today concerning either the AUD or the USD.