AUD/USD Forex Signal - 30 May 2019

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AUDUSD analysis: remaining bullish above 0.6900

Yesterday’s signals were not triggered, as the bullish price action took place between 0.6912 and 0.6902.

Today’s AUD/USD Signals

Risk 0.75%.

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

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6904 or 0.6882.

  • 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 Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6937 or 0.6963.

  • 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.

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AUD/USD Analysis

I wrote yesterday that as long as 0.6912 held, the technical picture remained more bullish than bearish although maybe not by a lot.

I was sure that 0.6912 was extremely likely to be the day’s pivotal point. The next support level below that also looked very attractive as an area to find a long trade entry.

This was a good call as although the bullish price action happened just below 0.6912, the area held. Technically the picture remains the same, we just need to move the nearest support level down to just above 0.6900.

I continue to take a similar approach: bullish above 0.6900 and very willing to take long trades at any returns to key support levels. If the price can get established above 0.6937 then that would be a very bullish sign.AUDUSDThere is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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.