AUD/USD Forex Signal - 21 March 2019

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Yesterday’s signals produced a profitable short trade from the double inside candlestick formation which rejected the resistance level at 0.7164 during the Asian session.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7113.
  • Place the stop loss 1 pip below the local swing low.
  • Put the stop loss to break even once the trade is 20 pips in profit.
  • Move 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

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7177.
  • Place the stop loss 1 pip above the local swing high.
  • Put the stop loss to break even once the trade is 20 pips in profit.
  • Move 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.

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AUD/USD Analysis

I wrote yesterday thatas the price was short-term bullish but also well within a wide level between support and resistance, while still being in a weak long-term bearish trend, it was probably best to stand aside until after these releases come out.This was a great call as just after the Australian data, the price fell from an inside candlestick break, making the minimum 20 pips of profit.

Although the USD has been weakened considerably by yesterday’s Federal Reserve dovishness, the AUD is not one of the relatively strong currencies, so I think trading this pair is still going to be challenging, unless you are looking for quick conservative profits from scalping rejections of key levels either long or short.

AUD/USD Forex Signal

There is nothing of high importance due today concerning either the AUDor 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.