AUD/USD Forex Signal: Wide-Ranging Environment

  


The market environment changed quite strongly over the past day, with risk-on moving firmly to become risk-off sentiment. 

Yesterday’s signals were not triggered as none of the key levels were hit before 5pm Tokyo time.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.7245 or 0.7221.

  • 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.

  • 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 Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7274 or 0.7298.

  • 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.

  • 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 the price was moving quite bullishly over the short term and appeared to be heading for the double top at 0.7340 again.

I thought that this level looked to be extremely pivotal. I was ready to trade either a breakout or a rejection there.

As it happened the market environment changed quite strongly over the past day, with risk-on moving firmly to become risk-off sentiment. This hit the Australian dollar hard and boosted the U.S. dollar, so we have seen a major turnaround.

Technically, it should be noted that the price has been moving over the past two weeks within a range from 0.7340 to 0.7221. Should the price succeed in moving down to 0.7221 or even the support at 0.7245 and then make a firm bullish reversal, that would be an attractive long trade, as there is no compelling reason why risk-off sentiment should persist for longer than a few days.AUD/USDThere is nothing of high importance due today concerning either the AUD or the USD.





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