AUD/USD Forex Signal – 28 March 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

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 Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7740 and 0.7729, or next touch of 0.7598.

• 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 Trade

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

• 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

Yesterday I wrote that I had no directional bias today, and saw this pair as best avoided for now. I was wrong, the bears won over the short term and pushed the price down in a smooth wave, forming a new lower resistance level very confluent with a round number at 0.7202. This changes the technical picture which has become more bearish. However, the price is approaching a small but significant zone of support, shown by the blue lines in the price chart below, and there are further support levels not far below that zone. I am bearish today until the price reaches 0.7750, where it might turn bullish a little early.

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.