AUD/USD Forex Signal

11 October 2017 8:37:08 AM

Yesterday’s signals were not triggered, as neither of the specified key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.50%.

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

Open trades should be protected by 6:30pm.

Short Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7820 or 0.7821.

  • 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 run.

Long Trade 1

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7750.

  • 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 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

Yesterday I noted the support level at 0.7778 but recommended against trading it as the price was sitting right on it. This turned out to be the correct thing to do as although the level has held, it has not managed to push the price anywhere. Instead we see a consolidation with falling volatility, as the price remains trapped between 0.7778 and the bearish trend line just above its current level.

The price remains established within a medium-term bearish channel, but is finding increasing support, although it has also rejected the upper trend line of the bearish channel. This pair is very difficult to call right now over the short term. The best that be said is that the Australian Dollar is relatively weak, so a bullish FOMC Meeting Minutes release later would be likely to be particularly expressed by a downwards move in this pair.AUDUSD

There is nothing significant due today concerning the AUD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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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