AUD/USD Forex Signal - 17 January 2019

Adam Lemon

Yesterday’s signals were not triggered as the bullish bounce as 0.7147 came a little late and was not quite strong enough, but the level seems to have proved itself as good support, holding to the pip.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time to 5pm Tokyo time today only.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7147 or 0.7100.

  • 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 of 0.7247.

  • 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 I still would be comfortable taking a bullish bias if the price was able to trade above 0.7225 for a couple of hours later. I would also be bullish if we got a strong bounce at 0.7147 later. The latter scenario did play out, but not early enough to be useful, and the bounce has not been truly strong.

The level at 0.7147 looks very likely to be pivotal today. If the price continues to advance and make higher highs after the New York open I would take a bullish bias, alternatively if it bounces bullishly again at 0.7147, I would also take a bullish bias.AUDUSDThere is nothing important due regarding either the USD or the AUD.

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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