AUD/USD Forex Signal – 02 April 2018

Last Thursday’s signals were not triggered, as none of the key levels were reached during the specified session.

Today’s AUD/USD Signals

Risk 0.50%.

Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.

Long Trade

• Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7640 and 0.7629.

• 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 ride.

Short Trade

• Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7702 or 0.7718.

• 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 took no bias last Thursday, stating a neutral position anticipating that the price was most likely to consolidate between the key levels. My analysis was correct, as none of the key levels which are containing the price have been breached, so there is no change at all to the technical picture on this currency pair. There is a long-term bearish trend in this pair, and as the price is failing to rise, and is close to a resistant area confluent with the round number at 0.7700, I now take a more bearish bias. A short from the resistance looks as if it could be a good trade.

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of the RBA Rate Statement and Cash Rate at 5:30am.