AUD/USD Forex Signal - 4 February 2016

AUD/USD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action at 0.7159.

Today’s AUD/USD Signals

Risk 0.75%

Trades must be entered from 8am New York time to 5pm Tokyo time.

Long Trade 1

• Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7140.

• 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 ride.

Short Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7245 and 0.7271.

• 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 ride.

Short Trade 2

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7301.

• 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 ride.

AUD/USD Analysis

More or less everything has been rising against the USD and the AUD has been no exception. There is a nice bullish trend line below that has served as a launching pad for this latest upwards leg. There are big news events coming shortly for both sides of this pair, so the coming action is very hard to forecast.

AUD/USD Analysis

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Concerning the AUD, there will be a release of the RBA Monetary Policy Statement and Retail Sales data at 12:30am.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.