AUD/USD forecast today

New weakness in the US dollar.

My previous recommendations on November 7th were not activated, as none of the key support or resistance levels I had identified on that day were reached.

Today’s recommendations for trading the Australian Dollar/US Dollar currency pair

• Risk 0.75%
• Trades must be entered before 5pm Tokyo time on Friday.

Sell ​​trading ideas

• Take a sell trade after the price action reverses to the downside on the time frame immediately on the next touch of the $0.6609 or $0.6631 level.
• Set a stop loss order one pip above the local swing high.
• Set the stop loss order to break even when the trade makes a profit of 20 pips.
• Take 50% of the position as profit when the price reaches 20 pips of profit and leave the rest of the position in play.

• Take a buy trade after price action reversals in an uptrend on the time frame immediately on the next touch of $0.6456, $0.6391 or $0.6345.
• Set a stop loss order one pip below the local swing low.
• Set the stop loss order to break even when the trade makes a profit of 20 pips.
• Take 50% of the position as profit when the price reaches 20 pips of profit and leave the rest of the position in play.

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

I wrote in my previous forecast on Tuesday last week that the AUD/USD pair is likely to consolidate above $0.6400 where it may give a buy trade from the nearest support level at $0.6391.

This was a good prediction, as the price settled above $0.6400 on the day.

There has been a significant change in expectations after US and UK inflation came in lower than expected this week, showing a strong decline in inflationary pressures in major economies. This has strengthened the case for interest rate cuts, especially in the US dollar, and this has helped strengthen risk appetite, which is usually represented by the Australian dollar strongly, which has led to a weakness in the US dollar. This has given this currency pair some upward momentum.

The chart below shows that the price is rising strongly after bouncing to almost reach the nearest support level a few hours ago.

The price is currently not far from the 3-month high above $0.6500 and there are no technically valid resistance levels in the way of such a long-term breakout to the upside.

I think the price is likely to rise today. If instead it first makes another pullback to the downside and bounces at the support level at $0.6456, especially if it also rejects the half figure at $0.6450 at the same time, I would be happy to take a buy trade there.

The chart was produced by the platform TradingView

For the US dollar, unemployment claims data will be announced at 1:30 PM London time. There is nothing of great importance today regarding the Australian dollar.

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