AUD/USD Forex Signal - 20 March 2017

20 March 2017 10:44:23 AM

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were reached during that session.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time to 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 next entry into the zone between 0.7747 and 0.7760.

  • 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 next entry into the zone between 0.7636 and 0.7625.

  • 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

This pair has reached a very interesting point. It is in a long-term uptrend, uniquely amongst major Forex currency USD pairs. It is testing an area which has acted as strong resistance for more than a year, and the level at 0.7750 which is part of this resistance is also a key psychological level. During the past year, the price has fallen by hundreds of pips from this level. For these reasons, I think this is a very pivotal area: we are relatively likely to either get a strong bullish breakout, or a sharp fall, so if either likelihood can be identified when it starts to happen, there is a profitable trade to be made.AUDUSD

There is nothing due today regarding the USD. Concerning the AUD, there will be a release of the Reserve Bank of Australia’s Monetary Policy Meeting Minutes at 12:30am London time.

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. Learn more from Adam in his free lessons at FX Academy.

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