SIGNAL FOREX

AUD/USD Forex Signal: Range Continues to Hold – DailyForex.com


Pivotal points at 0.7614 and 0.7668.

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Last Thursday’s AUD/USD signals were not triggered, as none of the key levels identified were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.0.7668

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

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7668, 0.7683, or 0.7701.

  • 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.

  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7614 or 0.7555.

  • 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.

  • Remove 50% of the position as profit when the price reaches 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.

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AUD/USD Analysis

I wrote last Thursday that the price was consolidating within a wide zone without support or resistance between 0.7555 and 0.7668.

I expected that this consolidation would continue, which was a good and accurate call, as it did.

There has continued to be limited directional movement in the Australian dollar, unlike the weaker currencies such as the euro and Japanese yen which have been depreciating against the greenback.

The technical picture is still one of consolidation, but now the key range is between 0.7668 and 0.7614.

As the USD is strong and looking unlikely to change in direction at least during today’s London and New York sessions, a short trade here would probably be a better opportunity than a long trade.

Therefore, if the price again pulls back to the area at or very close to 0.7668 then makes a firm bearish reversal, I think that this could be a good short trade set up.

However, there is no doubt that it is EUR/USD and USD/JPY which are likely to be today’s pairs in the market’s focus.

AUD/USD

There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CB Conumer Confidence data at 3pm London time.

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