AUD/USD Forex Signal: Bulls Have Small Edge

  


AUD/USD: Supportive area around 0.6500 looks very pivotal

Last Thursday’s signals produced a losing long trade from the bullish bounce at 0.6556.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6556.

  • 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 the zone between 0.6515 and 0.6500.

  • 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 last Thursday that I would take a bullish bias if we had gotten a bullish bounce between 0.6556 and 0.6515 as the line of least resistance seemed to be upwards. Although I was correct about the lower limit of this zone holding, the initial bounce was too high to survive.

The technical picture is one where the bulls have a small edge, but the dominant feature is this support at 0.6515 quite confluent with the major round number at 0.6500. This area is almost certainly going to be pivotal and so I would still be prepared to take a long trade from a reversal which sets up later between 0.6515 and 0.6500. If the price can get established below 0.6500 later during the Asian session, that would be a bearish sign.

As the U.S. is on holiday today, price movements should be minimal until the Asian session, so the ideal time for a trade to set up in this currency pair today would be during the Asian session.AUDUSDThere is nothing of high importance due today concerning either the AUD or the USD. It is a public holiday in the United States today.



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