AUD/USD Forex Signal: Bullish Consolidation Continues

  


Medium-term bullish trend in some danger.

Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at 0.7301 was first reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7248, 0.7204, or 0.7137.

  • Put the stop loss 1 pip below the lowest recent price.

  • 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.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7340, 0.7361, or 0.7379.

  • Put the stop loss 1 pip above the highest recent price.

  • 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 quietly bullish situation had not changed. I saw 0.7248 as very pivotal and was happy to take a long trade if we had gotten a bullish bounce at 0.7248.

I also thought that a sustained break below the support level at 0.7248 would be a bearish sign and day traders may want to watch for that and get involved there on shorter time frames if it happened – this did not happen either.

My analysis remains the same as the relatively narrow consolidation above 0.7248 has continued over another day. I am marginally less bullish overall as I think there is a slightly higher chance of 0.7248 breaking down as the price is taking its time while failing to rise, and the short-term price action at the time of writing is bearish.

I will take a short trade if we get two consecutive hourly closes below 0.7248, or a long trade if we get a bullish bounce from that level.

The Australian dollar is an interesting currency to trade as it has become such a solid risk barometer.AUD/USDThere is nothing of high importance due today concerning either the AUD or the USD.





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