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 may only be entered between 8am New York time and 5pm Tokyo time Thursday.

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7117, 0.7100, or 0.7083.

• 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

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7177.

• 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 there was little to say, except there were no obvious resistance levels anywhere nearby, and we were likely to reach the support level at 0.7117 first. The reaction there would probably give us a clue as to what is in store next. This wasn’t a good call although it did not cause any trouble. The price rose a little as the USD weakened. There is a new possible resistance level at 0.7177 which I have to note but it looks relatively unreliable. There is a long-term range with wide swings, meaning you can try to trade reversals from extremes, but it is all quite unpredictable. Any good trading opportunities that might come by today will probably not be in this currency pair.

Regarding the USD, the Chair of the Federal Reserve will be testifying before the House of Congress on its Monetary Policy Report at 3pm London time. Concerning the AUD, there will be a release of Private Capital Expenditure data at 12:30am.