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AUD/USD Forex Signal - 31 August 2015

By 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.

AUD/USD Signal Update

Last Thursday’s signals expired without being triggered as there was no bearish price action at 0.7169.

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.

 

Short Trade 1

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7248.

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

  • Move the stop loss to break even once the trade is 30 pips in profit.

  • Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.

 

Short Trade 2

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7283.

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

  • Move the stop loss to break even once the trade is 30 pips in profit.

  • Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.

AUD/USD Analysis

This pair remains bearish, with a continuing move down that flowed the initial spike which reached almost to 0.7000 early last week. At the time of writing it looks like a break below 0.7120 will probably see a fall ultimately down to the support level at around 0.7069. Despite seeing support there I would not look to get long this pair.

There is probably local resistance above at around 0.7200, and stronger resistance above that with a nice confluence of a resistive zone and bearish trend lines at around 0.7280. A news spike up there later could be a really great shorting opportunity.

AUDUSD

There is nothing concerning the USD due today. Regarding the AUD, there will be a release of Building Approvals data at 2:30am London time.

Adam Lemon
About 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.

 

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