AUD/USD Signal Today: Strong Bullish Move Faltering? (Chart)

(MENAFN- Daily Forex) My previous AUD/USD signal on 1st April may have produced a losing short trade from the rejection of the resistance level at $0.6268 and against at 6331's AUD/USD Signals

Risk 0.50%
Trades must be taken prior to 5pm Tokyo time Wednesday Trade Ideas

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6392, $0.6404, or $0.6434.
• 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 Idea

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6278.
• 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.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money AUD/USD Analysis

In my previous forecast a bit more than 2 weeks ago, I thought that $0.6268 would be pivotal. This was an unsuccessful call.

Over two week later, we have seen the price bottom out at a long-term low below the big round number at $0.6000 and over the last few days, continue to rise very firmly. However, there are signs that this bullish momentum is running out as we approach the formerly strong and pivotal resistance at $0.6392 which is confluent with the round number at $0.6400.

The US Dollar has fallen to multi-year lows, but the US Dollar Index is now holding quite steady at a key support level. Therefore, the conditions are right for a bearish reversal. The Australian Dollar has had a good run, but any emerging bad news on tariffs could definitely make it vulnerable to a significant bearish retracement, if not an outright bearish reversal.

For these reasons, I see a short trade after a firm rejection of $0.6392 as a good opportunity if it sets up today, especially if the wick of the rejecting candle pierces the round number at $0.6400.

EURUSD Chart by TradingView

There is nothing of high importance due today concerning either the AUD or the USD.

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