AUD/USD Forex Signal
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7938 or 0.7902.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.8004.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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.
The situation has changed since yesterday with a reasonably strong fall in the price, and a fresh resistance level which has printed at 0.8004 confluent with the major round number at 0.8000. So, I drop my bullish bias and change it to a stance of no directional bias. It looks as if the price is likely to continue downwards to reach 0.7938 at least. I see a ranging period as most likely to happen next, so either long or short bounces from key levels can be taken. However, as 0.8000 is such a significant number, we might see a medium or long-term fall from this area, meaning short trades are probably likely to have a higher reward to risk ratio.
There is nothing important due today concerning either the AUD or the USD.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
