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AUD/USD Forex Signal - 28 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 may have been triggered by this morning’s bullish bounce off 0.7682.

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 as close as possible to 0.7682 if this long trade has not already been taken.

  • 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. Take more profit at 0.7800.

 

Long Trade 2

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7647.

  • 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. Take more profit at 0.7800.

 

Short Trade 1

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7805.

  • 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 USD continued to strengthen yesterday but may be topping out against several of its key pairs. During the last few hours we have had a fairly bullish bounce off the anticipated support at 0.7682 which suggests we are going to have a long move today. Should the price break down instead, there is another supportive level plus a trend line just below 0.7750 which is very likely to be key support. In any case, it already looks good to be long.

The round number above at 0.7800 should be natural resistance. It was also previously support so it should hold at least for a while.

AUDUSD 52815

There will be G7 Meetings all day. Concerning the USD, there will be a release of Unemployment Claims 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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