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AUD/USD Forex signal May 19, 2015 - 19 May 2015

By 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.

AUD/USD Signal Update

Yesterday’s signals did not give a long trade as 0.8000 as there was no appropriate bullish price action there.

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.

Long Trade 1

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7950.

• Put 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 run.

Long Trade 2

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of the bullish trend line currently sitting at around 0.7882.

• Put 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 run.

Short Trade 1

• Short entry following some bearish price action on the H1 time frame bouncing off 0.8075.

• Put 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 run.

AUD/USD Analysis

The pair broke down past the anticipated support at 0.8000 yesterday with the strengthening of the USD and this level has now become minor resistance but it has been messed around a little too much to be very useful.

We got a move up from a price close to 0.7950 so this may again prove to be supportive but be careful and watch for another fairly strong rejection from there.

The Australian data we had earlier this morning has not proved directionally conclusive so the next major move is quite likely to be triggered by any surprises in tomorrow’s U.S. FOMC Minutes.

AUD/USD Analysis

There will be a release of U.S. Building Permits data at 1:30pm London time.

Adam Lemon
About 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.

 

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