AUD/USD Forex Signal - 2 September 2019

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AUDUSD: Weakly bearish below 0.6750

AUD/USD Daily Forecast 2nd September 2019

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s AUD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6740, 0.6750, and 0.6769.
  • 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 0.6677.
  • 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 last Thursday that the picture was solidly bearish at and above 0.6750, but this area below 0.6750 was very confused and unpredictable. For this reason, I was only looking to get short above 0.6750, which is unfortunate at 0.6750 held.

The picture now looks much more solidly bearish, with a symmetrical bearish price channel which seems poised to push the price down from 0.6730. We keep getting new resistance levels and descending trend lines, so it is hard to see how the price is not going to descend to the 0.6700 area at least. However, there will be a major data release due later concerning the AUD which could push the price around in a very unpredictable way.

I would take a bearish bias if we get a solid bearish reversal at any of the key resistance levels which I have highlighted above.

audusd

There is nothing of high importance due today regarding the USD, it is a public holiday in the U.S.A. today. Concerning the AUD, there will be a release of Retail Sales data at 2:30am London time followed the RBA Cash Rate and Rate Statement at 5:30am.

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