AUD/USD Forex Signal

Yesterday’s signals produced a profitable long trade from the bullish pin candlestick on the hourly chart which rejected the support level at 0.7165 and gave about 35 pips of profit. It is looking as if the price may get stuck below the resistance level at 0.7201 shown in the price chart below so it may be wise to take more or all remaining floating profit.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time until 5pm Tokyo time, during 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 0.7165 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

• Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247 or 0.7275.

• 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 all the key levels were remaining intact, and movement was moderate with quite low relative volatility. This left me with the conclusion that this currency pair was not something worth trading yesterday and so I had no directional bias. As it happened, the levels held, and there was an opportunity for a long trade from the support which netted a reasonable amount of pips.

I think today will hinge on whether the resistance at 0.7201 holds or breaks. I would take a bullish bias here if the price can trade above 0.7200 for a couple of hours.

Regarding the USD, there will be a release of the FOMC Economic Projections, Statement, and Federal Funds Rate at 7pm London time followed by the usual press conference half an hour later. Concerning the AUD, there will be a release of Unemployment Rate and Employment Change data at 12:30am.