AUD/USD Forex Signal

AUDUSD analysis: 0.6940 still held by bulls

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6940, 0.6904 or 0.6901.

• 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.

Short Trade

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

• 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.

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 it may be that the price would bounce at the lower support level of 0.6940, but overall the price looked very choppy and indecisive, so I made no directional call on this currency pair yesterday.

This was a good call as very little has happened here, within a generally quiet Forex market. The support at 0.6940 is making its presence felt gently. The lack of movement is probably a natural consolidation ahead of major data releases for both sides of this currency pair which we will get over the next 24 hours.

Due to the uncertainty of these releases, I do not have any directional forecast, but I note that the price would seem to be supported between 0.6900 and 0.6940 so I see a bullish reversal somewhere down here as the most probable directional outcome.Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. Concerning the AUD, there will be releases of Unemployment Rate and Employment Change data at 2:30am.