AUD/USD Forex Signal
Yesterday’s signals were not triggered as the bullish bounce as 0.7147 came a little late and was not quite strong enough, but the level seems to have proved itself as good support, holding to the pip.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time today only.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7147 or 0.7100.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7247.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 still would be comfortable taking a bullish bias if the price was able to trade above 0.7225 for a couple of hours later. I would also be bullish if we got a strong bounce at 0.7147 later. The latter scenario did play out, but not early enough to be useful, and the bounce has not been truly strong.
The level at 0.7147 looks very likely to be pivotal today. If the price continues to advance and make higher highs after the New York open I would take a bullish bias, alternatively if it bounces bullishly again at 0.7147, I would also take a bullish bias.
There is nothing important due regarding either the USD or the AUD.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
