AUD/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7165 or 0.7123.

• 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 Trades

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7237, 0.7250, or 0.7268.

• Put 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, I was just waiting for a level to hold and provide a double top or bottom to give more of a clue as to future direction.

The picture is more bearish today, as we see a new lower resistance level form at 0.7165 and the price falling from there. The market is mixed but it seems that we are seeing more U.S. Dollar strength in recent hours. Much will now depend upon the U.S. inflation data release due later.

The most interesting thing to watch out for, and it looks as if there will be nothing else, will be how the price reacts if 0.7165 is reached. A break below there would be a bearish sign. An unlikely break above 0.7268 would be a very bullish sign.

Regarding the USD, there will be a release of CPI data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 11pm. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am.