AUD/USD Forex Signal - Thursday, February 8

Yesterday’s signals were not triggered, as there was no bullish price action at 0.7835.

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trades

Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7780 or 0.7750.

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

Go short following some bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line shown in the price chart below which is currently sitting at about 0.7848.

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 the Australian Dollar remains weak and the U.S. Dollar remains strong. The picture remains bearish, unless the 0.7835 level survives another test and gives a stronger bullish bounce. The price did continue to move down in line with this analysis, breaking below a support level which has now probably flipped to become a resistant area just below 0.7850. This is reinforced by the adjusted descending trend line which is shown in the price chart below. If the area survives and keeps holding the price down until the New York open, it might provide a good short trade entry later as a zone of confluence. However, there are some obvious support levels below, and it would be wise for bears to watch out for the big psychological number at 0.7750 in particular.