On July 17, 2023, previous signals for AUD/USD were not activated.
Today’s AUD/USD Signal
- Risk is set at 0.50%
- Trades should be executed before 5 PM on Wednesdays.
Short Trade Ideas
- Consider a short entry after a brief price reversal at the next touch of $0.6541, $0.6554, or $0.6569.
- Set a stop loss at one pip above the recent swing high.
- If the trade gains 20 pips, it will trigger a stop to protect the stop loss.
- Upon reaching 20 pips of profit, take 50% of the position off for profit and adjust the remaining position to mitigate risk.
Long Trade Ideas
- Look for a long entry after a bullish price action at the next touch of $0.6495 or $0.6448.
- Place a stop loss at one pip below the recent swing low.
- Like before, if the trade hits 20 pips of profit, it will trigger a stop to protect the stop loss.
- Again, once at 20 pips profit, take half the position off and adjust the remaining position accordingly.
The classic “price action inversion” is best identified by observing hourly candle closings such as pinbars or doji patterns. Pay attention to price actions at specific levels or zones for better results.
AUD/USD Analysis
In my last AUD/USD forecast, I anticipated a short opportunity due to bearish momentum, but nothing materialized that day. Interestingly, after encountering resistance at $0.6458, the price experienced a significant bullish bounce, leading me to reconsider my initial outlook.
Technically, the setup suggests bearish conditions again, although it’s not crystal clear. The market feels a bit frothy, and there are hints of anxiety regarding how far the rally has extended. A notable aspect is the strength of the US dollar, which has contributed to the recent bearish movement and a notable decline in the pair.
Despite this bearish sentiment, prices are nearing key support levels, coinciding with the significant round number at $0.6500, where they had previously found stability.
For today, I’m eyeing speculative long positions since the price area around $0.6500 has been rejected. However, I’m prepared to seize profits if the momentum of the US dollar picks up again.
Later, at 2:30 AM London time, inflation data for AUD will be released, followed by JOLTS job openings data for USD at 3 PM.
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