AUD/USD Forex Signal

Yesterday’s signals were not triggered as there was no bearish price action at 0.7175 and insufficiently bearish price action at 0.7275.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time until 5pm Tokyo time today.

Long Trades

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7175.

• Put the stop loss 1 pip below the local swing low.

• Move 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 0.7347.

• Put the stop loss 1 pip above the local swing high.

• Move 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 it was quite likely that the price would consolidate here until the FOMC release due later. If that release produced a dovish impact, we could see a significant bullish movement above 0.7200 so I would take a bullish bias in that scenario once the price traded above 0.7200 for a couple of hours. This was an excellent call as this scenario played out and produced a very strong rise which is still close to making new higher prices above 0.7275 as at the time of writing.

It is significant that the dovish impact of the FOMC release yesterday produced the strongest relative falls in the value of the USD against the AUD and the NZD. This is a bullish sign and it looks likely that we will see still higher prices over the course of today. However I think the move is too over-extended to justify a generally bullish bias.

There is nothing of high importance due today regarding either the AUD or the USD.