AUD/USD Forex Signal Today 27/05: Consolidating (Chart)

(MENAFN- Daily Forex) The Forex market has been moving sideways so far this week, and this pair is no exception. However, the support below at $0.6467 looks strong and likely to be pivotal.

My previous AUD/USD signal on 15th May produced a profitable trade entry from the bullish bounce at the support level which I had identified at 6401's AUD/USD Signals

• Risk 0.50%
• Trades must be taken prior to 5pm Tokyo time Wednesday.

Short Trade Ideas

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6499, $0.6517, or $0.6531.
• 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.
• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

• Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6467, $0.6439, or $0.6407.
• 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.
• Take off 50% of the position as profit when the price reaches 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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In my previous forecast about one month ago, I thought this currency pair would continue ranging between $0.6491 and $0.6376. This was a good call, and a profitable long trade was triggered as support quite near the floor which I had identified at $0.6376.

EURUSD Chart by TradingView

The technical picture now is one of a selloff from a recent peak above $0.6500, but the price is now reaching a support level at $0.6467 which looks very interesting, as there was recently a double top rejecting this level from below some days ago when it was acting as resistance . These flipped levels tend to be relatively reliable, so it might well be that the price will find a floor here and give some kind of long trade entry, although a cautious scalp might be the best approach.

If the price does get established soon below this pivotal point at $0.6467, we could see a fall quite quickly to at least $0.6439.

The early signs are that the support level will hold so a long scalp could be attempted.

There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of CPI (inflation) data at 2:30am London time.

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