AUD/USD Forex Signal - 8 July 2019

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AUDUSD: Ranging from 0.6950 to 0.7050

Last Thursday’s signals were not triggered, as there was no bullish price action when the support was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken before 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6955 or 0.6940.

  • Place 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 ride.

Short Trade Ideas

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7002, 0.7029, or 0.7047.

  • Place 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 ride.

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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AUD/USD Analysis

I wrote last Thursday that I thought the price was more likely to reach the major round number at 0.7000 before it hit 0.7047 again, and if there were a strong bullish bounce at 0.7000, it would probably be a good long trade. I was correct as the price quickly reached 0.7000 and cut through the round number like a hot knife through butter, which was a bearish sign, indicating a sharp fall down to almost 0.6955.

There is a medium-term range between 0.6950 and 0.7050 and it looks now as if the price is going to move down again over the short-term after selling off from a level close to 0.7000 after a bullish retracement.

I see a likely scenario as a continued move down to the 0.6955 area, where a long trade opportunity might arise to play this range again.AUDUSDThere is nothing of high importance due today regarding the AUD or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.