AUD/USD Forex Signal - 23 January 2018

Tuesday, 23 January 2018 10:09

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.50%.

Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7938 or 0.7902.

  • 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.

Short Trade

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.8004.

  • 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.

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 situation has changed since yesterday with a reasonably strong fall in the price, and a fresh resistance level which has printed at 0.8004 confluent with the major round number at 0.8000. So, I drop my bullish bias and change it to a stance of no directional bias. It looks as if the price is likely to continue downwards to reach 0.7938 at least. I see a ranging period as most likely to happen next, so either long or short bounces from key levels can be taken. However, as 0.8000 is such a significant number, we might see a medium or long-term fall from this area, meaning short trades are probably likely to have a higher reward to risk ratio.AUDUSD

There is nothing important due today concerning either the AUD or the USD.

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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