AUD/USD Forex Signal: Bullish Bounce Off $0.6345 -

AUD/USD Forex Signal: Bullish Bounce Off $0.6345

Dec 12, 2024Jeremy ParkinsonFinance0

My previous signal on 10^th December produced both a profitable short trade from the bearish rejection of the resistance level at $0.6400 and a profitable long trade from the bullish bounce at $0.6345. Today’s AUD/USD Signals

Risk 0.75%

Trades must be taken before 5pm Tokyo time Friday.

Short Trade Ideas

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6442 or $0.6467 or $0.6509.

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

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6401, $0.6345, or $6299.

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.
AUD/USD AnalysisI wrote in my previous AUD/USD forecast two days ago that the AUD/USD currency pair was looking likely to break down below $0.6375.I thought that a daily (New York) close below $0.6375 would be a significantly bearish technical sign and could be a great signal to enter a new short trade.I was accurate with my levels, as both support and resistance levels were very useful for reversals that day. However, yesterday’s close below $0.6375 has produced a strong upwards price movement after the price made a strong bullish reversal at the lower support level at $0.6345. This is mostly due to US inflation data coming in as expected and clearing the way for a near-certain rate cut in the US next week, which has weakened the greenback.Despite the bullish move here over recent hours, the price clearly remains within a descending price channel, evidenced by the linear regression analysis study I have placed in the chart image below.The nearest resistance at $0.6442 is confluent with the upper edge of this channel, so a bearish reversal at that level could still be a great short trade – this point looks very pivotal. A bullish break above $0.6442 would be a significantly bullish development for the short to medium term.There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.More By This Author:Forex Today: Uptick In US Inflation Expected TodayWeekly Forex Forecast – Sunday, Dec. 8Forex Today: Bitcoin Breaks $100,000