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AUD/USD Forex Signal: Evenly Balanced – DailyForex.com

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AUD/USD: Bulls have slight advantage

Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level at 0.7117 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7090, 0.7070, or 0.7046.
  • 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, 0.7176, or 0.7204.
  • 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.

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AUD/USD Analysis

I wrote last Thursday that the price was packed in between several support and resistance levels quite close by with neither bulls nor bears really having a strong advantage.

I was less confident this week would be an up week, which I was wrong about.

I was not wrong about neither bulls nor bears having a clear advantage although the technical picture is marginally more bullish than it was. I think this is boosted slightly by the fact there is still a long-term trend in force in this currency pair.

This currency pair has emerged this year as a key barometer of risk sentiment, with the AUD being boosted in risk-on environments. At the moment, markets are seesawing backwards and forwards, and at increasingly low volatility, which means that right now is probably not a great time to be trading this pair.

As I take a very weak bullish bias, I am prepared to take a long trade if we get a strong bullish bounce at the support level identified at 0.7090.

AUDUSD

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

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