Today’s AUD/USD Signals
- Risk 0.75%
- Trades may only be entered before 5pm Tokyo time Tuesday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6308 or $0.6352.
- Put 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6233 or $0.6172.
- Put 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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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
In my previous forecast, I thought that the price would likely move lower and fail to get established above $0.6275. This was a good, accurate call.
In today’s AUD/USD forecast I predict that the AUD/USD currency pair is most likely to continue to trade sideways, due to the following factors:
- We see price moving quite aimlessly in the middle of the zone between the nearest support and resistance levels, without showing much momentum.
- The zone between the closest support at $0.6233 and the closest resistance at $0.6308 is wide.
- Neither currency within this pair is looking strong right now, although there are fundamental and monetary reasons for the USD to be strong, and the USD is still bullish within a valid long-term trend.
For these reasons, I am equally OK with a short trade from a rejection of $0.6308 or a long trade from a rejection of $0.6233. Be conservative with taking profit as it is likely to be a quiet Monday in the Forex market today.
There is nothing of high importance due today concerning either the AUD or the USD.
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