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AUD/USD Forex Signal - 20 February 2018

By 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.

Yesterday’s signals were not triggered, as there was no bullish price action at 0.7906.

Today’s AUD/USD Signals

Risk 0.50%.

Trades may be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.

Long Trade

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7892.

  • 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 0.7935 or 0.7995.

  • 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 as the outlook remained uncertain, I had no directional bias. This was a good approach as the price has continued to simply range up and down, although the action did break below and invalidate the former support level at 0.7906. The picture now looks more bearish, as the price seems heavy enough to break below the support at 0.7889. If the level holds until the New York open, it could provide a long trade, but be very cautious about taking that. A move down below, possibly a strong movement, looks like a more probable outcome.

AUDUSD

There is nothing due today concerning either the AUD or the USD.

Adam Lemon
About 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.

 

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