AUD/USD Forex Signal - 27 August 2019

Adam Lemon

AUDUSD: Weakly bearish situation persists

Yesterday’s signals were not triggered, as there was no bearish price action when 0.6775 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6769, 0.6788, or 0.6800.

  • 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 immediately upon the next touch of 0.6677.

  • 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 yesterday that although the technical picture was somewhat messy, the price was still being held by the short-term bearish trend line, so I saw a bearish failure at either 0.6775 or 0.6800 as an attractive condition to trigger a short trade entry. This was not an accurate call, but it was broadly correct, as the price rose to reach that area before turning more clearly bearish again. The price chart below shows how these resistance levels have been adjusted slightly to be more precise.

The NZD is still more bearish than the AUD, but this pair is certainly more bearish than bullish.

Although the short-term price action is pointing towards still lower prices, I am not confident that the price will clear the area just below 0.6750 which may already be acting as new support. I would want to either see the price falling below 0.6730 or reversing after a retracement to at least 0.6769 before I would take a bearish bias on this currency pair.AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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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