AUD/USD Forex Signal: Bullish Above $0.7000
The Australian Dollar is continuing to test key resistance confluent with the round number at $0.7000.
My previous signal on 2nd February was not triggered as there was no suitable price action when the key support and resistance levels were first reached that day.
Today’s AUD/USD Signals
Trades may only be entered before 5pm Tokyo time Friday.
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6988, $0.7072, or $0.7090. 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 Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6845.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.
I wrote in my previous forecast that the AUD/USD currency pair outlook was bullish above $0.7130. I thought a long trade from a bounce at this level would be a good trade opportunity.
This was not a good call, as the price quickly broke below that level and then went on to fall sharply over the following days. However, I was correct to see this level as pivotal.
The price is still lower than it was then, but the technical picture is looking bullish again. We have a major higher lower at about $0.6925 which was printed after the price made a bullish head and shoulders chart pattern with a neckline at about $0.6950.
The price is holding up nicely above $0.6950, and is showing some bullish momentum, but is facing what looks likely to be a very tough and clear resistance level at $0.6988 which of course is confluent with the round number at $0.7000.
The price may falter in this area and turn bearish, giving a potential short trade opportunity. On the other hand, if the price makes two consecutive hourly closes above $0.7000 by the end of the first half of today’s New York session, it could be a great signal to enter a long trade.
We do not have any major data releases scheduled today, and in the absence of any data, the price seems to be just see-sawing backwards and forwards between more risk on and more risk off. However, it is true that the long-term trend here is bullish, so that gives more weight to considering a long trade above $0.7000.
There is nothing of high importance scheduled today regarding either the AUD or the USD.
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