AUD/USD Forex Signal - 5 June 2017

05 June 2017 9:34:58 AM

By: DailyForex.com

Last Thursday’s signals produced a profitable long trade following the bullish rejection of the support level I had identified at 0.7391, with a bullish inside candle producing a little more than the minimum 20 pips of profit.

Today’s AUD/USD Signals

Risk 0.50%.

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

Short Trades 

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7506 or 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 Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7445 or 0.7419.
  • 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 price has been rising strongly since this week’s trading opened. Nevertheless, as there is no long-term trend, it is likely that the resistant area just above the big psychological number at 0.7500 will halt this movement. 

AUDUSD

Regarding the USD, there will be a release of ISM Non-Manufacturing PMI at 3pm London time. Concerning the AUD, there will be a release of the Cash Rate and RBA Rate Statement at 5:30am.

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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