AUD/USD Forex Signal 08/09: Weak Bullish Consolidation

(MENAFN- Daily Forex) Today's AUD/USD Signals

• Risk 0.25%
• Trades may only be entered prior to 5pm Tokyo time Tuesday.

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6589, $0.6595, or $0.6602.
• 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of $0.6528 or $0.6500.
• 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.

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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

In my previous AUD/USD forecast last Thursday, I wrote that I was bearish and this was a good call as the major trade of the London session was definitely a short.

The technical picture now is more bullish, as we see the price trading at a high, and breaking above a former resistance level at $0.6569. These are bullish signs.

Fundamentally, the Aussie is getting dragged higher as general risk sentiment in the market improves. This was most recently triggered by an increased perceived chance of strong US rate cuts over the remainder of 2025, and that is helping to drive stock markets up.

The risk-on bullishness is not very strong, but it is likely to last until at least the release of US CPI (inflation) data this Wednesday.

For these reasons I take a weakly bullish bias, but right now it is not clear where an appropriate entry point might be. The price could well rise higher today, but the resistance level at $0.6589 looks strong so is likely to hold over the short term at least.

One approach could be to wait for a return of $0.6569 and go long if there is an immediate bullish bounce rejecting that level.

EURUSD Chart by TradingView

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

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