AUD/USD Forex Signal - 12 August 2019

Adam Lemon

AUDUSD: Top in place above 0.6800

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6800 or 0.6829.

  • 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 ride.

Long Trade Idea

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6747.

  • 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 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.

AUD/USD Analysis

I wrote last Thursday that the longer-term odds were still with the bearish trend, but there was a “fat tail” opportunity here of a long-term buy as this could be another multi-month or even multi-year low which we just made.

This was a fairly good call as the price continued to rise, although it never retraced to 0.6747 where I saw the long entry opportunity.

The price now seems to have made a medium-term top above 0.6800 and is heading down with short-term bearish momentum. It looks likely to reach 0.6747 today and so again I look to this level as today’s pivotal point. A long trade could set up here, but I am not very optimistic about its chances for success.

I have no directional bias on this currency pair right now.AUDUSDThere is nothing of high importance due today concerning either the USD or the AUD.

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.
Learn more from Adam in his free lessons at FX Academy

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