AUD/USD Forex Signal - 4 April 2019

Yesterday’s signals were not triggered, as none of the levels were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7105 or 0.7088.

  • 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 Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7144 or 0.7164.

  • 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 this pair had moved into a symmetrical descending price channel. A further, solid move up above the highs here would invalidate that too. This is what happened, with the price making a double top at the highs after invalidating the upper trend line. What we are left with is a relatively chaotic situation which is hard to trade. I would avoid this currency pair for the time being.

A sustained break above 0.7130 would be a bullish sign and indicate a more definite and tradable price direction.AUDUSDThere is nothing of high importance due today concerning either the AUD or the USD.

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.