AUD/USD Forex Signal

AUDUSD analysis: Bearish below 0.6883

Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6904.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.

Long Trade

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6827.

• 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 Trades

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6883 or 0.6904.

• 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 last Thursday that although we had got a bullish bounce just above 0.6900, I was not very confident that the price would run bullishly from here. Commodity currencies were generally weak against the USD and the AUD was the weakest such currency of all, with this pair currently sitting in a long-term bearish trend.

I thought a break below 0.6900, if it is sustained, would see a further bearish move down to 0.6882. This was a good call and the very bearish situation continued, in fact we are seeing a repeat bearish wave originating from the flipped level at 0.6882. There is no stronger trend in the Forex market than the bearish trend here. I take a bearish bias today provided the price holds below 0.6883.There is nothing important due today concerning either the AUD or the USD.