AUD/USD Forex Signal - 31 January 2018

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 until 5pm Tokyo time, over the next 24-hour period only.

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.8039 or 0.8006.

  • 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

I had a bullish bias yesterday as the bullish price pattern was remaining intact. Although the last day hasn’t been a fun time for bulls, it must be said that the technical picture has not essentially changed. Support is holding, and higher lows continue. Having said that I do not see this as an especially great pair to be long of, with the Australian Dollar looking less bullish than the European currencies. I maintain a slight bullish bias.AUDUSD

Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm. There is nothing important due regarding the AUD.

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.