SIGNAL FOREX

AUD/USD Forex Signal: 0.7318 Holds Down Bullish Move – DailyForex.com


The AUD/USD is the most active currency pair after NZD/USD.

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken before 5pm Tokyo time Wednesday.

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7318, 0.7356, or 0.7398.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7298, 0.7269, 0.7245, or 0.7237.

  • 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.

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.

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AUD/USD Analysis

I wrote last Thursday that the price direction looked hard to predict but that the support level at 0.7244 could be strong, and the resistance at 0.7280 also looked firm, so scalping reversals off these levels would probably be the best approach. This did not work out so well as 0.7244 did not behave as firm support when it was first reached that day.

The technical picture now is a little more bullish as the price has continued to advance. The AUD is, after the NZD, the most strongly moving currency, and the USD is weak almost everywhere, so it seems the bulls are in the driving seat. However, unlike NZD/USD, there is meaningful resistance overhead at 0.7318. I would be wary of this level but still look to trade this currency pair long today from a bullish bounce which may set up at any of the nearby support levels. The support level at 0.7280 looks most attractive and likely to hold.

The Australian GDP release due later is likely to produce some directional volatility so if you have any open trades leading up to this release, be mindful of that.

AUD/USD

Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Regarding the AUD, there will be a release of GDP data at 2:30am.

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