AUD/USD Forex Signal - 17 May 2018

Yesterday’s signals were not triggered, as the bearish price action happened a little way above 0.7538.

Today’s AUD/USD Signals

Risk 0.50%.

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

Long Trade

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7453.

  • 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 0.7544.

  • 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 I had a weakly bullish bias above 0.7479. I also thought that if the support continued to hold, the picture would get more bullish as the day went on. This is what happened, with the price turning bearish very close to the resistance level I placed at 0.7538.

Although the price has now turned short-term bearish, it is probably going to be challenging trading this pair successfully today, as the current price area is becoming more and more congested with action and key levels, so it is likely that we will see largely choppy, consolidative price action today. The best potential set-up would be a rejection of any key levels later in the Asian session after quite action during the remainder of London and New York. I have no directional bias today.AUDUSD

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

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.