AUD/USD Forex Signal | DailyForex

AUDUSD analysis: Bulls pushing price up towards key 0.7000 area

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6940 or 0.6903.

  • Place 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 trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047.

  • Place 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 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.

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AUD/USD Analysis

I wrote yesterday that there is certainly bullish momentum in this pair, but it was likely to run out of steam due to the long-term bearish trend. However, the price had plenty of room to rise before hitting resistance, and the line of least resistance was certainly upwards. This meant that we may well see higher prices today if 0.6940 holds up, but there will probably be better opportunities in other currency pairs.

This was a good call as 0.6940 held, it was not even touched, and the price has continued to rise, albeit slowly. The short and medium-term pictures right now are solidly bullish. I show the next key resistance at 0.7047 but there is a key medium-term inflective area around the big round number at 0.7000 which could easily halt the advance, which has no long-term trend behind it.

I think the price is quite likely to reach 0.7000 today, but that it will probably not get much further than that before turning bearish and making a bearish retracement.

Alternatively, if the price retraces first to 0.6940 and bounces bullishly there, I would take a cautious bullish bias.AUD/USD Forex Signal | DailyForexThere is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by a speech on monetary policy from the Chair of the Federal Reserve at 6pm.

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