AUD/USD Forex Signal - 17 October 2018

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Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7118 or 0.7103.

  • 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

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7203.

  • 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 technical picture was unchanged: weakly bullish over the medium-term, and likely to rise higher if the price could get established above 0.7150 or so. I would take a bullish bias between 0.7150 and 0.7200. This was a pretty good call as although the action continues to be bullish, the price is not able to get established above 0.7150. Nevertheless, it is looking increasingly likely that this will happen as the medium-term bullish pattern of higher highs and higher lows remains intact.AUDUSD

Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate data at 1:30am.

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.