AUD/USD Forex Signal - 5 May 2016

AUD/USD Signal Update

Yesterday’s signals were not triggered.

Today’s AUD/USD Signals

Risk 0.75%

Trades must be taken from 8am New York time until 5pm Tokyo time.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7412.

  • 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 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7560.

  • 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.

AUD/USD Analysis

Even though there was more positive than expected Australian economic data released a few hours ago, it has done little for the currency. Although the level at 0.7467 was strong support and it did hold for a while, it was no surprise when it eventually broke down over the previous day.

We are some way from either of the key levels. In the meantime, it looks as if we have minor resistance at the key round number of 0.7500 and minor support at the half number of 0.7450.

AUDUSD

Concerning the AUD, there will be a release of the RBA Monetary Policy Statement data at 2:30am London time. Earlier, regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.