AUD/USD Forex Signal - 6 May 2019

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Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.

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

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 0.7028.

  • 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 last Thursday that the price was trading near long-term lows so it appeared that the bulls may have an edge, but I really wanted to see the price get below 0.7000 and ideally also 0.6986 before taking a bearish bias. The price did not really make such a break.

The important support level at 0.6986 was not even touched until the trade war rhetoric over the weekend from the U.S. administration caused markets to open with a gap down on risk assets, and there are few currencies seen as riskier than the Australian Dollar at present. It has been weak anyway lately due to an absence of inflation in the economy. Although the price has recovered a little, these are long-term lows, and if the price breaks below the low made earlier today on strong volatility, I would take a bearish bias. I would definitely not be looking for any long trade entries here.AUDUSDThere is nothing important due today concerning the USD. Regarding the AUD, there will be a release of Retail Sales data at 2:30am London time followed by The RBA Rate Statement and Cash Rate 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.