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AUD/USD Forex Signal - 3 March 2015

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

AUD/USD Signal Update

There are no outstanding signals.

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.

Long Trade 1

  • Long entry following some bullish price action on the H1 time frame immediately upon the first test of the bullish trend line currently sitting at around 0.7750.

  • Place 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 ride.

Short Trade 1

  • Short entry following some bearish price action on the H1 time frame immediately upon the first test of the zone from 0.7898 to 0.7910.

  • Place 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 ride.

USD/JPY Analysis

The AUD has been relatively bullish lately, and that was continued this morning when the Reserve Bank of Australia did not meet the market’s expectation that it would cut its base rate by another 0.25%. This led to an immediate rise in this pair earlier this morning up to the resistant level at 0.7835. It is telling that even this news could not get the pair above this level, so if it continues to remain below there today it is likely to fall back to the area at around 0.7750 which is a key psychological number. In this area, there is a short-term bullish trend line, so if it holds with a bullish reversal there should be an opportunity to get long.

If the AUD does show unexpected bullishness, the next obvious place to look for a short reversal is the zone around 0.7900.

AUDUSD 3315

There are no high-impact events scheduled for the AUD or USD later today.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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