AUD/USD Forex Signal - 26 February 2018

Last Thursday’s signals were not triggered, as there was no bearish price action at 0.7830.

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 0.7856.

  • 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 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

Last Thursday I identified a very bullish “U” formation which was pushing the price up, and I saw the short-term opportunity here as likely to be on the long side. This turned out to be correct, with the price breaking up and now printing a higher support level at 0.7856. However, the price seems to have run into some minor resistance now just below 0.7900. The short-term outlook is unclear, and I have no directional bias.AUDUSD

There is nothing important 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.