AUD/USD Forex Signal – 16 April 2018

By: DailyForex.com

Last Thursday’s signals were not triggered, as there was no bearish price action at 0.7775.

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trades

* Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7740 or 0.7695.

* 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

* Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7804.

* 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 last Thursday that I still maintained a bullish bias provided 0.7740 continued to hold as support. This worked well until the price reversed very decisively at the resistance level identified at 0.7804. The levels remain intact, with the price starting to consolidate roughly halfway between them. This ranging will probably continue until the RBA’s release due later during the Asian session, so it may not be worth trading this pair until that time.

Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am.