My previous signal on 4h December produced a losing short trade from the bearish rejection of the resistance level at $0.6443.
Today’s AUD/USD Signals
- Risk 0.75%
- Trades may only be entered prior to 5pm Tokyo time Wednesday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6400, $0.6442, or $0.6467.
- 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 price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6345 or $6299.
- 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 price reaches 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 in my previous AUD/USD forecast about one week ago that the AUD/USD currency pair was considerably more bearish, and this has continued to be the case, although the price has not really fallen much further.
The Reserve Bank of Australia left its Cash Rate unchanged at its policy meeting a few hours ago, but hinted at coming hikes in 2025 soon, and so the Australian Dollar is weak. What is probably saving this currency pair from a sharper fall is the stalling of the bullish trend in the US Dollar.
However, the price remains weak, and the price action is heavy on the multi-month low close by at about $0.6375.
Despite that, it seems that the price keeps finding support there and is not ready to break down.
The longer this level holds, the more likely an eventual bullish reversal becomes.
On the other hand, a daily (New York) close below $0.6375 would be a significantly bearish technical sign, and could be a great signal to enter a new short trade.
There is nothing of high importance due today concerning either the AUD or the USD.
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