SIGNAL FOREX

AUD/USD Forex Signal: Bearish Turn – DailyForex.com


AUD/USD: Round number at 0.7100 looks pivotal today

Yesterday’s signals were not triggered, as the bearish price action took place below both 0.7117 and 0.7139.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8 am New York time Wednesday and 5 pm Tokyo time Thursday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7100, 0.7075, 0.7041, or 0.7004.
  • Place the stop loss 1 pip below the lowest recent price.
  • 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 ride.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7150, 0.7182, or 0.7229.
  • Place the stop loss 1 pip above the highest recent price.
  • 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 ride.

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.

Advertisement

Think you have what it takes?

AUD/USD Analysis

I wrote yesterday that I did not think the resistance levels close by looked likely to hold. I saw the next strong resistance level as likely to be at 0.7182 so I was prepared to buy dips and turns on short-term time frames in the bullish direction if this momentum continued after today’s New York open.

This was not a great call as the momentum did turn bullish again a few hours after New York opened, initially breaking the nearest two resistance level, but turning bearish again just below 0.7150.

The technical picture now looks more bearish. Risky assets have sold off in recent hours, generally, with the Australian Dollar getting hit and the price being pushed down from possible new minor resistance at about 0.7125.

The price is getting pushed down towards 0.7100 which is both support and a round number, so this looks likely to be today’s pivotal point. Therefore, I am prepared to take a long trade from 0.7100 if we get a bullish bounce after the New York open later.

Below 0.7100, the outlook will be more bearish, but as there are several support levels leading down to the really big round number at 0.7000, these would be more dangerous trades.

AUD/USD

Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15 pm London time followed 15 minutes later by Final GDP numbers. There is nothing of high importance scheduled today concerning the AUD.

Let’s block ads! (Why?)


Scalping Strategy Course (DVD + Online) - $299.00

In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.




Forexmentor Coach's Corner First Month (Online) - $149.00

The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.



Source link

Have your say