AUD/USD Signal - August 1, 2013

Short AUD/USD between 0.9043 and 0.9077 if the price reaches this level before Midnight GMT tonight. Take 85% of the position as profit at 0.8935, move the stop to break even and allow the remainder to run with no fixed target for the time being.

Day traders should wait for the price to return to 0.9043 and look for trades from fast short breaks of inside or engulfing bars on the 15 minute chart, being prepared to enter more than once if necessary, but not more than three times. After one 15 minute bar closes above 0.9077, the signal is invalidated.

Traders that cannot be near their screen should set a limit sell order at 0.9043 with a stop loss at 0.9085, expiring at Midnight GMT tonight.

AUD/USD Signal Chart Aug 1

Notes
1. If todays' AUD/JPY signal is also triggered, bear in mind that both the trades have AUD risk in the same direction, so you might wish to make the second trade a smaller position size.
2. The AUD/USD signal is likely to be stronger, if triggered, than the AUD/JPY signal.

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.