AUD/USD Forex Signal – 16 May 2018

Yesterday’s signals were not triggered, as there was no bullish price action at 0.7478.

Today’s AUD/USD Signals

Risk 0.50%.

Trades must be entered between 8amNew York time and 5pmTokyo time, over the next 24-hour period.

Long Trade

— Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7453.

— 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

— Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7538.

— 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.

AUD/USD Analysis

I wrote yesterday that it was probably going to be better to stand aside today, unless the price fell very rapidly to the nearby support levels and then turns bullish. This scenario did play out, with the price bouncing strongly and eventually making a double bottom in the 0.7450 area. At the time of writing, it also looks as if 0.7479 is acting as new, higher support. If it can continue to hold as the day goes on, the picture will become more and more bullish. However, the big psychological round number could interfere with the bulls by suppressing any move up from here. I have a weakly bullish bias today above 0.7479.

Regarding the USD, there will be a release of Building Permits data at 1:30pm London time followed by Crude Oil Inventories data at 3:30pm. Concerning the AUD, there will be a release of Employment Change and Unemployment Rate data at 2:30am.

This article provided by NewsEdge.