AUD/USD Forex Signal - 8 May 2019

Adam Lemon

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7002 or 0.6950.
  • 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

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7088.
  • 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 the price was now far from either support or resistance.

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

The price action over the past day has made the picture a little more bullish – we see new higher support slowly taking hold at 0.7002 which is a significant round number. I would be prepared to take a bullish bias if the price gets back down there and makes a strong bullish bounce.

Another bullish sign is that the AUD is stronger than the NZD. We have also seen the NZD recover over recent hours to trade where it was before the quarter-point rate cut was implemented a few hours ago by the RBNZ.

audusd

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

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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