AUD/USD Forex Signal - 13 February 2018

Yesterday’s signals were not triggered, as the bearish price action took place a little above 0.7838.

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trade

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

  • 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

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch 0.7960.

  • 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 wrote yesterday that 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. This has been a correct approach, as the price has continued to rise, although not by much. This pair is simply not attractive to trade now, because there are no obviously and clear levels now for a long way in either direction. We only have a weak, short-term bullish channel holding up the price. Therefore I have no directional bias and expect any good opportunities today will come in other currency pairs.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.