AUD/USD Forex Signal: Consolidating Above $0.6637

My previous signal on 28^th June produced was not triggered, as there was no bullish price action when the support level at $0.6610 was first reached.

Risk 0.75%

Trades must be taken prior to 5 pm Tokyo time Friday.

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of $0.6673, $0.6687, or $0.6708.
• 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.
• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of $0.6637 or $0.6582.
• Put stop loss 1 pip below the local swing low.
• Adjust 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 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.

I wrote in my previous forecast that the AUD/USD currency pair had risen from, a short-term bottom at $0.6618 but this was running out of steam so a short trade entry here from $0.6667 would make sense.

I was correct to look to the short side, as the price did fall over that day, but the resistance level at $0.6667 was not reached so the entry signal was not triggered.

The technical picture now looks more balanced, despite the risk-off sentiment we have seen over the past day in Asian stock markets which typically hits the Aussie Dollar and boosts the US Dollar. We did see the price get pushed down to the support level at $0.6637 just a few hours ago, but we saw a very strong bullish bounce rejecting that level, suggesting that the technical situation is dominated by what seems to be a strong area of support despite the bearishness.

The risk-off sentiment is likely to evaporate today, which means that a long trade from another touch of $0.6637 followed by a bullish bounce is likely to be the best opportunity that might set up. The level looks so strong that scalpers might even want to enter with a limit order and monitor any open trade very closely.

If there is another bounce from $0.6637, it may not reach beyond $0.6673, so be conservative with taking profit.

Concerning the USD, there will be releases today of the ADP Non-Farm Employment Forecast at 1:15pm London time, followed by Unemployment Claims data at 1:30pm, followed by JOLTS Job Openings and ISM Services PMI data at 3pm. There is nothing of high importance scheduled today regarding the AUD.

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