AUD/USD Forex Signal - 23 January 2019

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Last Monday’s signals were not triggered, as the bullish price action took place slightly below 0.7147.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time until 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 0.7100 or 0.7075.

  • 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 0.7140 or 0.7175.

  • 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 last Monday that the dominant technical feature now was the bearish trend line which was keeping the price below 0.7200, aided by the new lower resistance at 0.7175. I thought the best move which might set up later would be a strong breakdown of 0.7147 which could then see a further fall to 0.7100. I was correct at least insofar as the break below 0.7147 did produce a further fall, but the price has been reluctant to go all the way to 0.7100.

It looks as if 0.7140 will be the pivotal level today, but there is little else to go by. However, there is definitely a medium-term bearish trend, so overall short trades are likely to produce more profit than long trades.

AUDUSDThere is nothing important due regarding the USD. Concerning the AUD, there will be releases of Employment Change and Unemployment Rate data at 12:30am London time.

There is nothing important due regarding either the USD or the AUD.

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.