AUD/USD Forex Signal - 6 August 2019

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AUDUSD: Price retreats from 10-year low at 0.6745

Yesterday’s signals were not triggered, as none of the key levels were reached yet.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6829 or 0.6868.

  • 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 0.6745.

  • 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.

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 the situation technically had become very interesting and significant, with the price close to a 10-year low at 0.6745, which was also confluent with a major psychological level at 0.6750. If the price can get established below 0.6745, I thought it could fall much further very quickly. However, the price never even reached this level.

The Australian Dollar remains one of the weaker currencies over the long-term, despite its recovery over recent hours. I still see the big opportunity to watch for here as a sustained break to multi-year lows below 0.6745. If the price falls again to that area and makes a bullish reversal, a long-term buy could be a great trade – the 0.6750 is a very important pivotal point to watch.AUDUSDThere is nothing of high importance due today concerning either the AUD or the USD.

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.