SIGNAL FOREX

AUD/USD Forex Signal: Australia Hit Hard – DailyForex.com


I will take a short trade if we do get the reversal from 0.7241 later until 0.7200.

AUD/USD: Pivotal zone around 0.7250

Yesterday’s signals may have produced a losing long trade from the semi-pin candlestick on the hourly chart which rejected the support level identified at 0.7217.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may be entered from 8 am New York time Wednesday to 5 pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7187, 0.7139, or 0.7121.
  • Put the stop loss 1 pip below the lowest recent price.
  • Move the stop loss to break even once the trade is 20 pips in profit.
  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7241, 0.7300, or 0.7317.
  • Put the stop loss 1 pip above the highest recent price.
  • Move the stop loss to break even once the trade is 20 pips in profit.
  • Remove 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.

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AUD/USD Analysis

I wrote yesterday that if 0.7250 held until the New York open, and we then quickly got 2 consecutive hourly closes below 0.7250, I would take a bearish bias until at least 0.7217. This was a good call and the basis of an easy and profitable trade in a short time frame.

The Australian stock market was hit relatively hard by yesterday’s global stock selloff. Australia has just entered its first recession in many years. The Australian Dollar has advanced very strongly during the risk rebound which markets have seen since late March. It is the “riskiest” major currency.

For these reasons, it is no surprise that the price sold off yesterday as money flows into the safe haven of the U.S. Dollar.

However, we did see a bullish inflection at the round number of 0.7200 a few hours ago. The price rose from there and is now testing what seems to be a pivotal point between 0.7241 and 0.7250.

I think if stock markets continue to bounce back later as they have in recent hours, and the price here breaks above 0.7250, we could see a further rise. Alternatively, if 0.7241 holds and then stocks start to sell off firmly, the price should fall again towards at least 0.7200.

I will take a short trade if we do get the reversal from 0.7241 later until 0.7200.

AUD/USD

There is nothing of high importance due today regarding either the USD or the AUD.

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