AUD/USD Forex Signal – 18 October 2018

By Adam Lemon

Yesterday’s signals produced a losing long trade from the bullish doji hourly candlestick which rejected the support level identified at 0.7118.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be entered from 8amNew York time to 5pmTokyo time, over the next 24-hour period only.

Long Trade

— Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7103.

— 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 0.7203.

— 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 it was looking increasingly unlikely that the price could get established above 0.7150, despite the medium-term bullish price structure which was clearly in place. This was a good call as the price pulled back from 0.7150 and has yet to overcome this area which is acting as a hurdle for any further meaningful advance.

I would be bullish today above 0.7160 as the medium-term picture still looks broadly bullish above 0.7103 and we have no reliable long-term trend which trumps this as an indicator of directional edge.

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

 

This article provided by NewsEdge.