AUD/USD Forex Signal: Support At $0.6651 Holds -

AUD/USD Forex Signal: Support At $0.6651 Holds

May 21, 2024Jeremy ParkinsonFinance0

My previous signal on 16^th May 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 taken prior to 5pm Tokyo time on Wednesday.

Short Trade Ideas

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6673, $0.6682, or $0.6737.

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

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6651, $0.6629, $0.6590, or $0.6546.

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 AnalysisI wrote in my previous forecast on Thursday last week that the AUD/USD currency pair was looking as if it were lacking obvious direction.I thought that a long trade from a bullish bounce at any support level, especially the one at $0.6629, could be a nice trade, due to the long-term risk-on trend.This was not an accurate call over the short term, but I was right over a period of several days about the price being more likely to rise than fall.The technical picture now is consolidative over the medium term, with the price now stuck in a range between support at $0.6651 and the area just above $0.6700.The past few hours have seen the price find support at $0.6651. As this is in line with the long-term bullish trend, a long trade from this turn at support could be a great swing or even position trade. A bounce at $0.6629 could also be an excellent long trade entry signal.The Aussie is strongly correlated with risk-on sentiment, and we are seeing major US equity indices, and many other indices, break to reach new record highs.There is nothing of high importance due today regarding either the AUD or the USD.More By This Author:Forex Today: Gold, Silver, Copper Rise To Fresh HighsEUR/USD Forex Signal: Bulls Pushing For New 2-Month HighBTC/USD Forex Signal: Consolidating Above $60,000