AUD/USD Forex Signal - 7 May 2019

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Yesterday’s signals were not triggered, as there was no bearish price action when 0.7028 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Long Trade

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6950.
  • 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

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7088.
  • 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 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.

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AUD/USD Analysis

I wrote yesterday that the price had recovered a little, these were long-term lows, and if the price broke below the low made earlier that day on strong volatility, I would take a bearish bias. This was a good call as it was at least enough to keep out of trouble, as the low was never broken and the price rose quite strongly on stronger than expected Australian retail sales data and the fact that the RBA did not cut its interest rate as had been expected by the market consensus. These factors pushed the price up over the late Asian session, although the price has been selling off gently from that high.

Recent price movements have wiped out the nearest key level, and the price is now far from either support or resistance.

The best observation I can make is that the low earlier this week above 0.6950 is still a long-term low and we can still be heading for a significant bearish breakdown to lower lows.

AUD/USD Signal

There is nothing important 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.