AUD/USD Forex Signal

Yesterday’s signals were not triggered, as the bullish price action took place below the support level identified at 0.7039.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Wednesday 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 0.7039 or 0.7027.

• 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 Trades

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7117 or 0.7164.

• 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 looked as if the price would move down to test these lows just below 0.7090 and may well fall further. I thought the level at 0.7070 will be the important pivotal level of the day, but I had no directional bias here now. I was almost right, as the price got a little further than 0.7070 before pivoting upwards to rise higher quite firmly.

The price is short-term bullish but is well within a wide level between support and resistance, while still being in a weak long-term bearish trend. This makes trading this currency pair very challenging, and to complicate things even more we have major releases due during the New York and early Asian sessions which could send the price anywhere, so it is probably best to stand aside until after these releases come out.

Regarding the USD, there will be releases of the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm London time, followed by the usual press conference half an hour later. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 12:30am.