AUD/USD Forex Signal: Still Bearish

Adam Lemon
Adam Lemon
on February 25, 2020 | Updated On Feb 25, 2020

AUD/USD: Breakdown towards 0.6500 looks likely

Yesterday’s signals were not triggered, as the price never reached 0.6635.

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6623, 0.6635, or 0.6662.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

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 I simply took a bearish bias on this currency pair for the day, due to the continuing risk-off sentiment stoked by fears that a coronavirus pandemic will emerge and the Australian Dollar’s negative sensitivity to these developments.

This was not a disaster, but the price did not fall yesterday and in fact has risen by a few pips over the last 24 hours.

The technical picture is still bearish and maybe even a little more so with the price failing twice at the weekend gap, which has created a new lower resistance level at 0.6623.

I maintain my bearish bias as we are still seeing markets gripped by fear over the coronavirus, so I will look for short trades from any bearish reversal today at either 0.6623 or 0.6636.AUDUSDThere is nothing of high importance due today concerning either the USD or the AUD.

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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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