AUD/USD Forex Signal - 6 March 2018

Tuesday, 6 March 2018 10:31

By: DailyForex

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trades

  • Long entry following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7696 or 0.7640.
  • 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 Trades

  • Short entry following some bearish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7785 or 0.7816.
  • 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 no bias yesterday, noting it could be hard to predict directional movement due to high-impact news releases due concerning both currencies. The price rose quite strongly, but then turned bearish at the new resistance level of 0.7785 during the Asian session on worse than anticipated Australian retail sales and current account data. The technical picture now looks relatively bearish as the price chart shown below is dominated by a medium-term bearish trend line and a new lower resistance level. However, the lower price area has been crowded, suggesting buyers who may be able to hold the price from falling much further.

AUD/USD

Concerning the AUD, the Governor of the RBA will be speaking at 9:35pm, followed by GDP data at 12:30am. There is nothing due concerning 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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