AUD/USD Forex Signal - 21 February 2018

Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.7892.

Today’s AUD/USD Signals

Risk 0.50%.

Trades must 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 Trades

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7935.

  • 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

I wrote yesterday that the picture looked more bearish, as the price seemed heavy enough to break below the support at 0.7889. A move down below, possibly a strong movement, looked like a more probable outcome. My forecast was correct, the price did move down and is still within a near-channel, bearish short-term structure. This is all part of a broader ranging pattern between 0.7750 and 0.8000. The current picture looks short-term bearish, but it is not clear there is going to be a good entry opportunity soon because the price is not close to any key levels.

AUDUSD

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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.