AUD/USD Forex Signal

Last Thursday’s signals were not triggered as there was no bullish price action at 0.7117.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7066, 0.7054, or 0.7039.

• 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 0.7117.

• 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 last Thursday that it seemed likely that the support at 0.7117 would be hit and that we may get a bullish move from there – if not that level, then from one of the levels below it. I thought that a strong bullish reversal from as close to 0.7000 as possible was going to be the best trade which might set up.

This was not a bad call as although the price broke below 0.7117, it did find support just a few pips above the level at 0.7066. Although we are seeing a slow move down over recent days, I still think we are more and more likely to get a major bullish reversal the closer we get to 0.7000 or any of the three support levels above it which are shown in the price chart below. So, I will take a bullish bias if there is a strong bullish move from any of these support levels later today. If it follows the release of the RBA Rate Statement, that could be great.

There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of the Reserve Bank of Australia’s Rate Statement at 3:30am London time.