AUD/USD Forex Signal - 26 November 2019

Adam Lemon

AUDUSD: Dominant bearish trend line still holds

Yesterday’s signals produced a profitable long trade from the bullish bounce off the support level I identified at 0.6822. However, this only gave the minimum 20 pips of profit.

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 Ideas 

⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6803, 0.6822, or 0.6862. 

⦁ 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 0.6769, 0.6754, or 0.6744. 

⦁ 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 yesterday that the price was likely to continue to fall and reach the support level at 0.6769. I suggested being very careful about taking any long trade due to the bearish trend. 

This was a good call as the price did fall to that level at 0.6769 where it bounced to the pip, giving a small long trade, which I was correct to be cautious over due to its relatively limited scope.

The technical picture is still bearish as the medium to long-term descending trend line continues to hold, as shown in the chart below, although we have had a bit of a bounce at the first support level as mentioned.

I’d be more bearish below 0.6769 and more bullish above 0.6803, but I still prefer short trades from resistance levels here overall. AUDUSDRegarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

Concerning the AUD, there will be a release of Construction Work Done data 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

Currency Pairs:
Comments

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.