AUD/USD Forex Signal - 29 August 2019

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AUDUSD: Confused situation below 0.6750

Yesterday’s signals produced a profitable short trade from the bearish outside candlestick on the hourly chart which rejected the resistance level at 0.6750, but it only gave 22 pips, barely more than the minimum 20 required to be profitable.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Thursday to 5pm Tokyo time Friday.

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.

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AUD/USD Analysis

I wrote yesterday that I expected lower prices over the course of the day and if the price could get below 0.6725, it was quite likely to make a stronger and sharper fall down towards the 0.6677 level. This was not a bad call as the price did move lower, but barely got below 0.6725 before rebounding and advancing back up to the 0.6750 area.

The picture now is solidly bearish at and above 0.6750, but this area below 0.6750 is very confused and unpredictable. This higher resistance levels above that look very strong, so I would be prepared to take a bearish bias at strong bearish reversals at any of those three resistance levels later. AUDUSDRegarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time. Concerning the AUD, we will get Building Approvals 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.