AUD/USD Forex Signal: Consolidation below 0.7500

The Aussie is likely to fall against a strong US dollar.

My last signal of the 5and April was not triggered because there was no proper price action when each of the support and resistance levels I had identified were first reached.

AUD/USD Signals Today

Risk 0.75%

Professions can only be entered before 5 p.m. Tokyo time on Thursday.

  • Short entry following a reversal in bearish price action on the H1 time frame immediately after the next touch of 0.7493, 0.7523, 0.7557 or 0.7588.
  • Place the stop loss 1 pip above the local swing high.
  • Move the stop loss to break even once the trade has reached 20 pips of profit.
  • Withdraw 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position roll.

Long Business Ideas

  • Long entry following a bullish reversal in H1 time frame price action immediately after the next touch of 0.7569, 0.7548 or 0.7536.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade has reached 20 pips of profit.
  • Withdraw 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position roll.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pinbar, doji, outside, or even just an engulfing candle with a higher close. You can exploit these levels or zones by observing the price action that occurs at the given levels.

Advertisement

AUD/USD Analysis

I wrote in my previous article about this currency pair on the 5and April that the technical chart had turned much more bullish, with the price rising very sharply due to high volatility immediately following the release of the RBA rate statement, to trade at a new 9-month high .

I thought the market was ripe for day traders to trade longer on shorter timeframes, and price might go all the way to the next resistance level at 0.7636 or even 0.7650.

This was a good call, as the price continued to move higher during the day even past 0.7650.

However, After hitting a new 9-month high at 0.7661, the price reversed sharply and quickly fell back to its former consolidation zone and has been looking weak ever since.

The technical picture has turned a little more bearish as we now see price looking weakly bearish while consolidating below the confluent resistance level with the large round number at 0.7500.

The AUD does not look particularly weak, but if it trades lower without breaking above 0.7500 to reach new lows below 0.7400, it could quickly dip as low as the next support level at 0.7321. The band of several resistance levels not far above the current price suggests that the line of least resistance will definitely be down, so the greatest potential is likely to be in the near term.

One would have expected the RBNZ’s sharp rise in rates of 0.50% a few hours ago to lift the values ​​of the highly positively correlated AUD and NZD, but the rise had little impact. effect, which is undoubtedly a bearish sign.

I’m willing to take a short trade of a bearish firm reversal off 0.7493, especially if the price of 0.7500 is touched as part of the rejection.

AUD/USD

Regarding the USD, there will be a release of PPI data at 1:30 pm London time. As for the AUD, there will be an unemployment data release at 2:30.

Comments are closed.