AUD/USD Forex Signal - 28 August 2019

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AUDUSD: More bearish

Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistance level I had identified at 0.6769.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Wednesday to 5pm Tokyo time Thursday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6750, 0.6769, 0.6788, or 0.6800.

  • 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 immediately upon the next touch of 0.6677.

  • 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.

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AUD/USD Analysis

I wrote yesterday that although the short-term price action was pointing towards still lower prices, I was not confident that the price would clear the area just below 0.6750 which may already be acting as new support. I wanted 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.

This scenario I was hoping for has not materialised yet, but the technical picture is already looking more bearish as we get new resistance at the psychological level of 0.6750 and the price continues to move down slowly but steadily.

I expect lower prices today and if the price can get below 0.6725, it is quite likely to make a stronger and sharper fall down towards the 0.6677 level.AUDUSDRegarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the AUD, we will get Private Capital Expenditure data at 2:30am.

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