AUD/USD Forex Signal - 5 February 2019

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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 be entered between 8am New York time and 5pm Tokyo time today only.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7175.

  • 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 0.7347.

  • 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 bears had a very slight edge, but it seemed as if the price was beginning to consolidate. I had no directional bias and thought it was quite likely little would happen here until the key AUD release due later. This was a good call as the price continued to slowly fall until the RBA release which was seen as a little bullish by the market and pushed the price up to 0.7260.

We can say that over the last 10 or 20 days we are seeing a bullish trend, but it is a weak trend which has not yet become established or meaningful. I would be more comfortable with taking long trades than short trades today, but I am not clear about likely direction.AUDUSDConcerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Regarding the AUD, the Governor of the RBA will be speaking 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.