AUD/USD Forex Signal - 7 November 2019

Adam Lemon

AUDUSD: Evenly balanced

 

Yesterday’s signals were not triggered, as the bullish price action took place between the support levels at 0.6877 and 0.6855.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered 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 0.6927, 0.6940, or 0.6955.

⦁ 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 0.6885 or 0.6855. 

⦁ 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 as it was likely to be a quiet day in the market, the best approach would be to trade any bounce rejecting the levels at either 0.6877 or 0.6927. I took no directional bias on this currency pair today.

This was the right approach as the price has continued to consolidate in wide swings, but unfortunately the bottom was a bit lower than 0.6877 so wasn’t exploited.

There is no change to the technical picture, we still see wide swings within a range from 0.6927 and 0.6855, so I would be looking to fade reversals at either of these extreme levels. However, watch out for the RBA’s Monetary Policy Statement which could produce a break of this range if it contains any surprises. More likely, it will produce a spike in the price to one of the extremes, giving a trading opportunity, so just after the release is likely to give the best time for a trade entry.

I again have no directional bias on this currency pair.AUDUSDRegarding the AUD, there will be a release of the RBA’s Monetary Policy Statement at 12:30am London time. There is nothing of high importance due today concerning the USD.

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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