AUD/USD Forex Signal: Bullish On Strong Aussie Inflation Dat| MENAFN.COM

Saturday, 28 January 2023 06:38 GMT

AUD/USD Forex Signal: Bullish On Strong Aussie Inflation Dat


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The Australian Dollar is powering to new highs, boosted by higher-than-expected Australian inflation data announced earlier today.

my previous signal on 19th january was not triggered as none of the key support or resistance levels were reached that day.Today's AUD/USD Signals

Risk 0.75%

Trades
may only be entered before 5pm Tokyo time Thursday.
Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.7141 or $0.7213.
  • 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
  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.7085, $0.7063, or $0.6998.
  • Place the 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.AUD/USD Analysis

I wrote in my previous forecast that the aud/usd currency pair was bearish below $0.6918 but seemed unlikely to fall much further that day and that if $0.6845 was reached, it would probably hold the price up, at least for a while.

This was a good call as $0.6918 did act as a pivot point, holdingthe price down as resistance until bulls broke above the level which then triggered a more decisive upwards move. As I had suspected, the price did not even reach the key support level at $0.6845.

The technical picture now is much more bullish, and this is caused by two major factors:

  • Australian CPI data released earlier today showed a surprise increase to the highest annualized rate seen in 32 years , boosting the prospect of more and stronger rate hikes, which in turn makes the AUD more attractive.
  • The persistent, long-term bearish trend in the US Dollar , which has slowed in momentum but is still happening.

    These factors combine to make this currency pair strongly bullish .

    It is not likely that there will be any news later today that would reverse this sentiment and trend, so the directional movement upwards is likely to continue over the day , although maybe with some minor retracements.

    For these reasons, I see long trades from bounces at the support levels below at $0.7085 or (especially) $0.7063 as very attractive .

    There is nothing of high importance scheduled today regarding either the AUD or the USD.

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