My previous AUD/USD signal on 16th October produced a losing long trade from the bullish reversal at $0.6472.
Today’s AUD/USD Signals
Risk 0.25%
Trades must be entered before 5pm Tokyo time Friday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6510, $0.6541, or $0.6559.
- Place 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6463, $0.6455, or $0.6443.
- Place 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Top Forex Brokers
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
In my previous AUD/USD forecast last Thursday, I wrote that the round number at $0.6500 was likely to be the day’s pivotal point, but I didn’t think the price would run far either side of that line. I was hoping for a short trade in that area. I was close and on the right track, but the highs were just a bit too high for that to set up.
The technical picture has become very dull, for almost 10 days we have seen a simple consolidation pattern playing out within a range of about 120 pips.
However, we do still have this same resistance level from my previous forecast in play at $0.6510 which might provide an opportunity for another short trade, as the price is near the top of the consolidation range I noted earlier, between $0.6440 and $0.6525.
There is nothing of high importance scheduled today concerning either the AUD or the USD.
Ready to trade our daily Forex signals? Check out our Forex brokers list.