AUD/USD Forex Signal - 5 September 2019

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AUDUSD: Aussie goes marching on

Yesterday’s signals were not triggered, as there was no bearish price action when 0.6800 was reached.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered prior 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 0.6829 or 0.6868.

  • 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 Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6800, 0.6784, 0.6771, or 0.6753.

  • 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 the price has moved up and broken strongly and cleanly through all of these resistance levels I was looking at – it seems we have made a major, long-term bullish bottom below 0.6700. I had confidence that the move would persist and only wanted to seek a long trade entry.

This was a good call as the price has continued to advance very stiffly, and I was right to see this as a major bullish development. The break now above 0.6800 is technically significant. Unfortunately, we did not get any retraces to support levels. However, we are bound to get this soon which should bring a good long trade entry opportunity at least once.

I would take a bullish bias today if we get any bullish bounces at a key support level following a bearish pull-back.AUDUSDThere is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm.

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