AUD/USD Forex Signal - 25 January 2018

Last Tuesday’s signals produced a losing short trade following the bearish pin candle rejecting the identified resistance level at 0.8004.

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.8039.

  • 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 ride.

Short Trade

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.8163.

  • 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 ride.

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 risen, but it is not one of the top gainers against the USD. The price is also not making long-term high prices, there is still residual resistance above 0.8100. I had thought that the 0.8000 level would cap the price, but the price broke up and gained relatively strongly for a while, helped along by this bullish break. It now looks as if the area at about 0.8039 should become good support. I now have a slightly bullish bias, provided the price remains above 0.8039.
AUDUSD

There is nothing important due today concerning either the AUD or the USD. It is a public holiday in Australia today.

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.