AUD/USD Forex Signal - 31 January 2017

AUD/USD Signal Update

Yesterday’s signals were not triggered as none of the identified price levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hours period only.

 

Short Trade 1

  • Short entry following some bearish price action on the H1 time frame immediately upon the first entry into the zone between 0.7628 and 0.7637.

  • 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.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Long Trade 1

  • Long entry following some bullish price action on the H1 time frame immediately upon the first entry into the zone between 0.7518 and 0.7500.

  • 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.

  • Remove 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.

AUD/USD Analysis

The consolidation triangle which I mentioned yesterday has now been broken to the upside, but very weakly. There is little else to say except the price looks very choppy and indecisive, though I hold a slightly bullish bias.

AUDUSD

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm 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.