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AUD/USD Forex Signal: Strongly Bullish – DailyForex.com

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AUD/USD: New 3-month high price

Yesterday’s signals were not triggered, as neither of the key levels were reached yesterday.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6683 or entry into the zone between 0.6735 and 0.6750.

  • Put 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Long Trade Idea

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6616.

  • Put 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.

  • Take off 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 the USD is the second-weakest currency, and the AUD is very strong, so this pair looked set to keep rising over the near term.

This was a great call as we have seen another strong rise over the past day. The price has now made a new 3-month high and the AUD remains the strongest major global currency due to increasingly strong risk appetite which is indicated by stock markets breaking to new significant highs. There is also more optimism regarding the pace of China’s economic recovery which is a significant factor for the Australian economy.

The price is just under the key resistance level at 0.6683 as at the time of writing, so is likely to need a bearish retracement before it can rise again. I would be very happy to take a long trade following such a pullback to 0.6616 followed by a bullish bounce.

Alternatively, if the price keeps rising strongly, it would be very likely to make a serious bearish reversal close to or at the significant quarter-number at 0.6750.AUDUSDRegarding the AUD, there will be a release of Private Capital Expenditure data at 2:30am London time. There is nothing of high importance due today concerning the USD.

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