The Aussie is likely to fall against the strong US dollar.

My last signal of the 13^and April was not triggered as none of the key support and resistance levels I had identified were hit.

AUD/USD Signals Today

Risk 0.75%

Trades must be taken by 5 p.m. Tokyo time on Thursday.

• Go short after a reversal in bearish price action on the H1 time frame immediately after the next touch of 0.7235, 0.7275 or 0.7321.
• Put the stop loss 1 pip above the local swing high.
• Adjust the stop loss to break even once the trade has reached 20 pips of profit.
• Withdraw 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position work.

Long Business Ideas

• Go short following a bullish reversal in H1 timeframe price action immediately after the next touch of 0.7082 or 0.7006.
• Put the stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even once the trade has reached 20 pips of profit.
• Withdraw 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position work.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside, or even just an engulfing candle with a higher close. You can exploit these levels or areas by observing the price action that occurs at the given levels.

AUD/USD Analysis

I wrote in my previous article about this currency pair on the 13^and April that price looked weakly bearish while consolidating below the confluent resistance level with the large round number at 0.7500.

I thought that if the price made new lows below 0.7400, it could quickly dip as low as the next support level at 0.7321. The band of several resistance levels not far above the current price then suggested that the line of least resistance would be down.

It was a decent call as I was correct in saying that 0.7400 was the pivot. It held today’s low as support.

The picture has now changed, with the prize taking quite steep falls last week as US dollar uptrend continued To advance. However, the Aussie dollar has made some strong rebounds this week, which may give bulls hope, yet it is still making lower lows and higher highs suggesting that the medium term downtrend is still in effect.

Commodities in general have weakened in recent days, and a few hours ago Australian CPI data was released, showing inflation at 5.1% and beating expectations. This hasn’t had a negative effect on the Aussie yet but should logically support further bearish movement.

I think the only interesting pattern we could see today in this currency pair would be a bearish reversal at 0.7235, which would present an attractive entry point for short positions.

There is nothing very important to do today regarding the USD or the AUD.