AUD/USD Forex Signal - 25 May 2017

Yesterday’s signals produced a losing short trade following the bearish inside candle break from the resistance level at 0.7506.

Today’s AUD/USD Signals

Risk 0.50%.

Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.

Short Trade 

  • Short entry following some bearish price action on the H1 time frame immediately upon the next entry into the zone between 0.7506 and 0.7517.
  • Put the stop loss 1 pip above the local swing high.
  • 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 ride.

Long Trade 1

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7486 or 0.7429.
  • 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 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

The picture remains confused, there is a long-term bearish trend but a fairly stable short term bullish trend. There is a zone of resistance getting established just above 0.7500 which is a major psychological number and so it might hold. Watch the supportive levels carefully, and a break of the dominant bullish trend line should signify a major medium-term trend change.

AUDUSD

There is nothing due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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.