AUD/USD Forex Signal

Monday, 12 February 2018 10:21

By: DailyForex.com

Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7780.

 

Today’s AUD/USD Signals

Risk 0.50%.

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

 

Long Trade

· Long entry 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.

 

Short Trade

· Short entry following some bearish price action on the H1 time frame immediately upon the next touch 0.7838.

· 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 Australian Dollar was very weak last week, and the U.S. Dollar was strong. However, we are now getting signs that this pair is bottoming out, with the price finding support when it gets close to the major psychological number at 0.7750. Nevertheless, the resistance level at 0.7838 is clear and held firmly when it was tested. Overall, it is a challenge to make a directional call here. The best approach may be to be bullish above 0.7838 and bearish below 0.7750. Neither outcome would be surprising, although 0.7750 stands out as a bigger level than 0.7838, so any rise from here may have further to run than any fall below 0.7750.AUDUSD

There is nothing 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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