AUD/USD Forex Signal - 26 August 2019

AUDUSD: Slightly bearish consolidation persists

Last Thursday’s signals were not triggered, as none of the key levels given were hit during that day’s session.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Monday until 5pm Tokyo time Tuesday.

Short Trade Ideas

• Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6775, 0.6800 or 0.6829.
• Place the stop loss 1 pip above the local swing high.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 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 Idea

• Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6746.
• Place the stop loss 1 pip below the local swing low.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 50% of the position as profit when the trade is 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.

AUD/USD Analysis

I wrote last Thursday that although the technical picture had become slightly more bearish with the break of the formerly supportive trend line leaving the chart dominated by a bearish price channel, both the levels at 0.6800 and at 0.6746 looked strong and equally balanced, so I was ready to take a trade from a strong reversal off either of them.

The support at 0.6746 broke down which is a bearish sign. This week opened with strong risk-off movement which rebounded very quickly a few hours ago following a claim by President Trump that China has been in touch with him over a resumption of trade terms negotiations. This sent the Aussie higher, but the price is still being held by the short-term bearish trend line which can be seen in the price chart below.

The picture is no clearer today, but I see a bearish failure at either 0.6775 or 0.6800 as an attractive condition to trigger a short trade entry, and I would take a bearish bias if either of these scenarios set up.

There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.