AUD/USD Forex Signal - 25 February 2016

AUD/USD Signal Update

Yesterday’s signals expired without being triggered.

 

Today’s AUD/USD Signals

Risk 0.75%

Trades must be entered between 8am New York time and 5pm Tokyo time.

 

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the supportive trend line currently sitting at about 0.7112.

* Place the stop loss 1 pip below the local swing low.

* Adjust 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 after bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7245 and 0.7271.

* Place the stop loss 1 pip above the local swing high.

* Adjust 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

I wrote yesterday that this week’s open at 0.7155 might be supportive and so it has proved to be, although the really interesting support is this long-term bullish trend line that is getting closer and closer to the current price, which is shown within the chart below.

This pair really has to break up past 0.7245 and stay up there, otherwise it is eventually going to break below the supportive trend line and quite probably drop like a stone. Meanwhile, we can look to fade either 0.7245 or the supportive trend line.

We can see there is a trend line and three key resistant levels between 0.7245 and 0.7300, and moreover, if this currency pair does hold up above there it will signal a major trend change with a long-term bullish move looking probable.
AUDUSD

There is nothing due today concerning the AUD. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time.

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.