AUDUSD Forex Signal

Yesterday’s signals were not triggered, as neither 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, during the next 24-hour period.

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7343.

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

• Adjust 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 0.7403 or 0.7453.

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

• Adjust 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 I was uncertain as to short-term direction and that there was too much support and resistance congestion, so I was looking to trade reversals of the more extended levels. The picture is a little clearer now, so it was perhaps wise to stand aside temporarily, and we are now in a more bearish situation. However, the nearby support and resistance is still clustered, and these levels look relatively unreliable, but I do have more faith in the resistance level at 0.7374 holding than the support level at 0.7343.

I have a weakly bearish bias, but this pair is taking its time moving down and there seems to be more activity now in the European currency pairs. Still, we are at long-term lows and that is usually a good bearish sign.

There is nothing important due today concerning either the AUD or the USD.