AUD/USD Signal Today – 19/12: 2-Year Low Drop (Chart)

My previous signal on 12th December was not triggered.

Today’s AUD/USD Signals

  • Risk 0.75%
  • Trades may only be entered 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 $0.6299, $0.6352, or $0.6388.
  • Put the stop loss 1 pip above the local swing high.
  • Adjust 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 run.

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 $0.6166, $0.6126, or $6102.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust 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 run.

 

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

I wrote in my previous AUD/USD forecast one week ago that the AUD/USD currency pair was looking likely to resume its bearish trend sooner or later, so I thought a short trade from a rejection of $0.6442 was a good call.

I was right about the bearish trend resuming, but the price did not get back to $0.6442.

The technical picture has become more bearish as the price continued to slowly decline before taking off with a strong downwards move yesterday which pushed the price to a new 2-year low price.

This was triggered by the US Federal Reserve making it clear that it sees inflation as elevated and is planning for only two rate cuts in 2025, which hit risk sentiment (knocking the Aussie) and boosted US treasury yields (pushing the US Dollar higher).

The price has recovered since the strong spike down, but not by a significant amount. The wave down still looks impulsive and there is a strong, long-term bearish trend, with commodity currencies like the Australian Dollar especially weak.

The bullish move now might extend, we have already had one significant higher low which led to another bullish leg.

The area of the round number above at $0.6300 looks likely to be the first serious test for bulls. I will be happy to enter a new short trade if we see a rejection of that level when it is first reached.

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

Ready to trade our free Forex signals? Check out our list of the top 100 Forex brokers.

Related Posts

© Reuters

Forex flows were light into payrolls data, BofA says, highlights positions at risk By Investing.com

Có thể bạn quan tâm China’s forex market stable in November Forex Signals Brief December 18: The Next FED Rate Cut Is Here! The Central Bank of…

Forex Markets React to Speculation on Trump’s Economic Policies

Forex Markets React to Speculation on Trump’s Economic Policies

Có thể bạn quan tâm Stay Competitive in 2025 with Forex CRM Provider Techysquad India’s forex reserves fall to $652.87 billion, down $1.98 billion as of Dec…

EUR/AUD taps out, Wall Street could throw the ASX a lifeline (for now)

EUR/AUD taps out, Wall Street could throw the ASX a lifeline (for now)

Có thể bạn quan tâm Korea to relax FX rules by December to boost dollar selling Forex Today – 17/12: NASDAQ 100, Bitcoin, Cocoa Futures FXCess Launches…

Dollar softens slightly amid gradual tariff pledge

Dollar softens slightly amid gradual tariff pledge

Có thể bạn quan tâm Asian Markets Mostly Trade in Negative Territory Dollar Index Hits Two-Year High Against Forex Rivals as Rate Cut Outlook Settles — TradingView…

GBP/USD Forex Signal Today 14/01: Bullish Rebound (graph)

GBP/USD Forex Signal Today 14/01: Bullish Rebound (Chart)

Có thể bạn quan tâm GBP/USD Hits 1-Year Low on UK Govt Gold Analysis Today 19/12: Attempts Recovery (Chart) USD/CHF Signal Today – 16/12: USD/CHF at Resistance…

GBP/USD Price Analysis: Sterling Steady Ahead of US Inflation

GBP/USD Price Analysis: Sterling Steady Ahead of US Inflation

Có thể bạn quan tâm AUD/USD Nosedives: Are Bears Eyeing Further Damage? Back half of the week brings key datapoints as NFP looms ahead USD/MXN Signal Today…

Leave a Reply

Your email address will not be published. Required fields are marked *