AUD/USD Forex Signal: Weakly Bearish Below 0.7765

Last Tuesday’s AUD/USD signals were not triggered, as the price never quite reached the support level at 0.7575 and made no bearish price action when either of the resistance levels identified were first reached.

Today’s AUD/USD Signals

Risk 0.75%

Trades may only 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 0.7765 or 0.7816.

• 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 1H1 time frame immediately upon the next touch of 0.7705, 0.7683, or 0.7683.
• 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.

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 Tuesday that I saw the technical feature to watch out for today as whether the price would get firmly established above 0.7800. If so, and if the greenback maintained its weakness, I thought that we would be likely to see the price continue to rise to hit 0.7850 over the day.

This was a good call, at least concerning 0.7800 as the day’s likely pivotal point, as the price quickly got established back below 0.7800 by the time my signal was published as the London session got underway, and then went on to fall as low as 0.7708 by the end of the day.

The technical picture now looks mixed and uncertain over the medium term, and the Forex market in general is lacking direction so far today and looking uncertain. However, we do see some short-term bearish momentum following the bearish reversal from the resistance level at 0.7765 a couple of hours ago, so we may see the price fall here over the day.

There is nothing of high importance due today concerning either the AUD or the USD