AUD/USD Forex Signal - 9 January 2020

Adam Lemon

AUDUSD: Bearish below 0.6882

Yesterday’s signals were not triggered as unfortunately the price never quite reached the resistance level at 0.6882.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Thursday and 5pm Tokyo time Friday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6882 or 0.6909.

  • 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 0.6817 or 0.6803 or 0.6781.

  • 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 level at 0.6882 had continued to hold and so the picture remained technically bearish. I was prepared to take a bearish bias if we had gotten another bearish reversal at either 0.6882 again or at 0.6909.

This was a good call as the nearest resistance level at 0.6882 held with the high of the day just 1 pip below it, so I was accurate about the direction and about the key level.

The picture remains bearish, as although there is more risk-on sentiment which should help the AUD, the AUD is suffering from relative weakness due to fears of a coming rate cut from the RBA, and the USD is strong everywhere.

The bearish technical situation should last until at least the NFP data is released tomorrow (Friday).

I will take a bearish bias if we get a bearish bounce from 0.6882 later today.AUDUSDThere is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Retail Sales data at 12:30am London time.

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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