AUD/USD Forex Signal 04/09: Bearish Price Channel (Chart)

(MENAFN- Daily Forex) Today's AUD/USD Signals

Short Trade Idea

• Short entry between $0.65207 and $0.65351, the latest intra-day low that confirmed the bearish price channel, and an intra-day high touching the mid-level.
• Place your stop loss level 10 pips above your entry level.
• Adjust the stop loss to break even once the trade is 25 pips in profit.
• Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Long Trade Idea

• Long entry if price action breaks out above $0.65588, ten pips above the intra-day high of the last confirmation of the upper band of the bearish price channel.
• Place your stop loss level 10 pips below your entry level.
• Adjust the stop loss to break even once the trade is 25 pips in profit.
• Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

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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/USD Fundamental Analysis

Economic data worth considering:

• The Australian trade surplus surprised to the upside, as exports rose 3.3% and imports decreased by 1.3%, resulting in a surplus of A$7.310 billion. Economists expected a trade surplus of A$4.880 billion.
• Today's US ADP report will capture the focus of traders, expected to show only 73K job creations in the private sector for August, down from July's low reading of 104K. Additional labor data includes initial jobless claims, the Challenger Job Cuts report, and second-quarter unit labor costs and non-farm productivity.
• The ISM Non-Manufacturing PMI for August could also move the US Dollar. Economists expect an increase from July's 50.1 to 50.9. Traders should also monitor the Prices Paid component. The S&P Global Services PMI and the S&P Global Composite PMI will also be released.
• July's US trade deficit is expected to widen to $77.7 billion from June's deficit of $60.2 billion.

So, why am I bearish on the AUD/USD after its recent breakout and reversal?

I predicted more downside yesterday, since a bearish price channel dominated. My alternative long position and profitable exit kept me near neutral from a profit-loss perspective, but I am selling today's bearish price channel again. A pending breakdown below the ascending 61.8% Fibonacci Retracement Fan level should accelerate the current correction.

The Bull Bear Power Indicator has been decreasing for eight hours and has spent the last six hours in bearish territory. Average bearish trading volumes have risen as this currency pair moved lower within its bearish price channel.

I expect weak US economic data, which could boost the AUD/USD and spike volatility. Provided that the price action remains below its ascending 50.0% Fibonacci Retracement Fan level, I will stay short. Forex traders should earn 25 to 40 pips from this short position.

AUD/USD Price Chart

There is nothing of high importance due today regarding the Aussie. Concerning the US Dollar, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by the Unemployment Claims 15 minutes later, then ISM Services PMI at 3pm.

EURUSD Chart by TradingView

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