AUDUSD Forex Signal
Last Wednesday’s signals were unfortunately not triggered as the bearish turn took place a few pips above 0.7804. Traders who were prepared to be a little flexible there could be sitting on large, fast short profits.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trades
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Go long following some strongly bullish price action on the H1 time frame immediately upon the next touch of 0.7629 or 0.7598.
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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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Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7804.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
The rise in bullish sentiment on the U.S. Dollar has blown the earlier slightly bullish technical picture out of the sky. The price has sliced through support levels like a hot knife through butter. I would be extremely careful taking any long trades today. It looks very likely that the price will fall further. Things might change later in the Asian session if the Australian inflation data comes in higher than expected. Sentiment and momentum look bearish and I take a bearish bias until then.
There is nothing due today regarding the USD. Concerning the AUD, there will be a release of CPI data at 2:30am London time.
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.
