AUD/USD Signal Today 16 January 2025

(MENAFN- Daily Forex)

• Risk 0.75%
• Trades must be taken prior to 5pm Tokyo time Friday.

Short Trade Ideas

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6247 or $0.6299.
• 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.
• Take off 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6195, $0.6172, or $0.6126.
• 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.
• Take off 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/USD Analysis

I wrote in my previous AUD/USD forecast last Thursday that the AUD/USD currency pair was

Looking bearish in all ways, on technical, fundamentals, and sentiment, after reaching a new 4-year low price, with the price action contained within a linear regression analysis (still shown in the price chart below).

Things have changed a bit over the past week, becoming less bearish as the price is showing signs of having found a bottom at $0.6131 and as the consolidative price action moves the price towards the upper trend line linear regression analysis channel.

Yesterday's US CPI data release has only weakened the USD a little, and did not do much against the Aussie here. However, it has made things marginally more bullish.

Bulls are likely to maintain a small edge if the price remains above the strong support level at $0.6195. The nearest resistance level is confluent with the big quarter-number at $0.6250.

I will be happy to enter a new long trade following a bullish rejection of $0.6195 or following a sustained breakout beyond $0.6250 – a breakout beyond this level would be technically significant as the price would then have broken out of the bearish price channel which has dominated the price action for the past several weeks. These two levels look very certain to be pivotal today.

There is nothing of high importance due today concerning the AUD. Regarding the USD there will be releases of Retail Sales and Unemployment Claims data at 1:30pm London time.

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