AUD/USD Forex Signal - 29 October 2019

Adam Lemon

AUDUSD: Unpredictable action

Last Thursday’s signals produced a nicely profitable move up from the support level identified at 0.6809. Any remaining profit should probably be taken now.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6917.

  • 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

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6834, 0.6809 or 0.6769.

  • 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.

AUD/USD Analysis

I wrote last Thursday that the big picture was that the AUD was relatively bearish and the medium-term bearish topping out was continuing. This meant that a continued movement down to 0.6809 looked likely to happen. This was a great call as it described perfectly what did happen exactly to the pip, with the price making a low at 0.6809 before rising again strongly from there.

This pivotal point at 0.6809 continues to impress and remains the standout price level in the price chart below – I would be prepared to take a bullish bias if another bounce happened down there following a bearish price movement. The other levels nearby look weak and the medium-term price action unpredictable now the bullish move seems to have played out.AUDUSDRegarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time. Concerning the AUD, there will be a release of CPI (inflation) at 12:30am.

About the Author
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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