AUD/USD Forex Signal

AUDUSD analysis: Choppy short-term consolidation pattern

Yesterday’s signals were not triggered, as there was no bullish price action at 0.6963.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Long Trades

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6940.

• Place the stop loss 1 pip below the local swing low.

• 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

• Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7047.

• Place the stop loss 1 pip above the local swing high.

• 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.

AUD/USD Analysis

I wrote yesterday that the technical picture remained interesting as the price had retraced to the support level at 0.6963 which had held up so far. I thought that we may now get another bullish move and there could be a chance to enter here close to this support level with low risk.

I was ready to take a bullish bias if the price was held up by 0.6963 going into the New York session and then started to see some bullish momentum. This was an OK call insofar as it was enough to stay out of trouble: instead of moving up, the price made a slightly bearish choppy consolidation and invalidated the support level at 0.6963.

It may be that the price will bounce at the lower support level of 0.6940, but overall the price looks very choppy and indecisive, so I make no directional call on this currency pair today.There is nothing important due today concerning either the AUD or the USD.