AUD/USD Forex Signal - 8 August 2019

Adam Lemon

AUDUSD: Price recovers strongly from 10-year low

Yesterday’s signals were not triggered, as there was no bearish price action when 0.6745 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.

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 0.6747.

  • 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.

AUD/USD Analysis

I wrote yesterday that I would take a bearish bias later if we had gotten a firm bearish reversal at 0.6745 / 0.6750. It would have been ideal if the price had touched 0.6750 as well as 0.6745. This area looked extremely likely to be the day’s pivotal point.

This was a good call as the price was the pivotal point of the day: once it was broken the price kept on rising.

We have had a strong bullish recovery from a 10-year low price. The longer-term odds are still with the bearish trend, but there is 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.

I would take a bullish bias today if the price retraces to 0.6747 and makes a firm bullish bounce there.

If the price turns bearish and breaks back below 0.6747, that would be a significant and very bearish sign.AUDUSDThere is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the RBA will be testifying before Parliament at 12:30am London time and the RBA will be releasing its Monetary Policy Statement at 2:30am.

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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