AUD/USD Forex Signal

07 June 2017 9:35:30 AM

By: DailyForex.com

Yesterday’s signals produced a losing short trade following the bearish engulfing candle rejecting the resistance level identified at 0.7517. The trade would have produced a maximum of only 10 pips of profit, well below the minimum 20 pips required for a trade exit.

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.

Short Trades 

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7506 or 0.7517.
  • 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 run.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7457, 0.7445, or 0.7419.
  • 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 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 thought yesterday that the area of anticipated resistance around the large psychological number of 0.7500 would hold, but I was wrong. Instead the price is now established within a very firm short-term bullish channel, and has flipped areas of former resistance to support. Although there is no long-term trend, there are no key resistance levels before 0.7625, so it looks likely that the price will continue to rise over the next few days at least. 
AUDUSD

Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time. Concerning the AUD, there will be a release of Trade Balance data at 2:30am.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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