My previous signal on 27th September gave a profitable short trade entry signal from the bearish price action reversal at the resistance level at $0.6386.
Today’s AUD/USD Signals
Risk 0.75%
Trades may only be entered before 5pm Tokyo time Thursday.
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6517.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6388 or $0.6278.
- Place stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the price reaches 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.
Top Forex Brokers
AUD/USD Analysis
I wrote in my previous forecast that the AUD/USD currency pair was looking very bearish, which was a great call for the day – I was specifically looking for a short trade from $0.6386, which set up and was profitable.
This currency pair has been advancing slowly over recent days, as the US Dollar has begun to sell off against its long-term trend as recent data and comments from the Fed have raised the market’s hope that there will be no more rate hikes in the USA in 2023.
Despite this, the Australian Dollar is not looking especially strong.
Technically, the short-term momentum is bearish, and it looks as if the price may retrace now to the support level shown within the price chart below at $0.6388.
As the US Dollar Index is currently sitting on key support, it may make a bearish breakdown, which would support a long trade in this currency pair following any bullish bounce at $0.6388,
Regarding the USD, there will be a release of PPI data at 1:30pm London time and FOMC Meeting Minutes at 7pm. There is nothing of high importance scheduled today concerning the USD.
Ready to trade our daily Forex signals? Compare this list of the best currency trading brokers in Australia worth checking out.