Daily Price Action
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AUDUSD Downtrend Set to Continue Below 0.7510

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use on this website.

Just over one month ago on April 24, I wrote that I favored AUDUSD shorts below 0.7640. The pair had just closed the day below the trend line that extends from the 2016 low as well as the 0.7640 horizontal pivot.

Following a 200 pip drop between April 23 and May 9, the pair found a few buyers. It also completed the descending channel you see in the chart below.

This was another scenario where you could have plotted the channel early to identify a profit target. See this lesson to learn more.

Since that May 9 low, AUDUSD bulls have gained some traction. However, I see this as nothing more than consolidation that will likely trigger the next leg lower.

But we don’t want to just sell anywhere. That’s a good way to get chopped up in a market that’s consolidating like this one.

Instead, we want to look for counter-trend levels that could signal the breaking point for buyers. In other words, an ascending trend line that if broken could attract another round of selling pressure.

As it turns out, we have the ideal ascending trend line that extends from that May 9 low. And as I type this, the AUDUSD is testing the level at 0.7510. If we get a close below this level (even a 4-hour one) it may signal the start of the next leg down.

If we do get a breakdown here, the next key support comes in at 0.7330. This is the May 2017 low and is an area that served as weekly resistance during the last few months of 2015.

Additionally, 0.7330 is very near the 61.8% Fibonacci retracement when measuring from the 2016 low to the current 2018 high.

Alternatively, if sellers can’t get the job done near 0.7510, I’ll watch for a selling opportunity on a move higher into the 0.7640 region.

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AUDUSD descending channel on the daily chart

Leave a Comment:

26 comments
Etwi Barimah Appiah says

Thanks very much for your analysis every time Justin Bennett. It’s really helpful and I really appreciate your efforts

Reply
    Justin Bennett says

    You’re welcome. Cheers.

    Reply
Ben P says

Can’t thank you enough for your brilliant ongoing advice

Reply
    Justin Bennett says

    My pleasure. Glad to hear you find it helpful.

    Reply
RASHEDUL says

Good entry but fundamentally this pair both currency weak

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    Justin Bennett says

    Sorry, but the USD has in no way been weak lately. Perhaps you meant they’ve both been relatively strong?

    Reply
LE+THI+BICH+NHAN says

tuyệt vời, bao năm rồi mình tìm mãi mà không được, nay gặp bạn, mình mới thấy rõ được thị trường, cảm ơn bạn…

Reply
    Justin Bennett says

    English, please.

    Reply
antonio says

Ottimo. Grazie!!!!! A presto per l’abbonamento live. Sei il n 1

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md sumon hossain says

audusd— sell ? please replay

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Prasanna says

I love you bro, thanks for sending trendline. Kindly help me to understand price action.

Reply
    Justin Bennett says

    You’re welcome. Feel free to browse the 100+ lessons on the site.

    Reply
Akpotu Obaro says

your knowledge and analysis are priceless. thanks alot, this has help me revolutionised my trading and profit. more knowledge to you. Amen

Reply
    Justin Bennett says

    That’s great to hear. Well done. Cheers.

    Reply
Tumzaza says

Thank you for your analysis update, we are schooled

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edger says

Thanks Justin

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Vik says

Hello Justin, based on your analysis on eurusd, price closed below 1.1570?Also the gpbusd has close below 1.33003,what next line of action please?Thank you always for your brillant analysis.

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Otis Lee Jr says

After over a decade, I was just about to give up trying to trade. Now that I have found Daily Price Action, I am all in again…Thanks Justin…

Reply
    Justin Bennett says

    I love hearing that! Thanks for sharing, and you’re very welcome.

    Feel free to reach out with any questions.

    Reply
ericand42 says

and AudUSD went off a cliff at 7501.
Well done and thanks Justin.

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Isaac says

Hello Justin,I must say I am really impressed by your trading setup so far.I have been following you for like 3 months now but I never took your trading advice so serious but as at today I can see that you really know what you are doing as a professional trader!Thumb up man and I wish you will continue the good work..

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Jay says

that mean audusd is going down for long term?

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Israel says

Thank you very much Justin For your dairly setups. they are very helpful

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Azhar says

AUDUSD is going bullish although daily was closed below 0.7510? Did anyone short AUDUSD? I am new to this and was wondering what else should have been considered before entering into this trade?

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    MOLAN says

    Patience matters, all this analysis are good but it’s meant for long term traders

    Reply
Sera m says

AUDUSD is going bullish yet it was supposed to go bearish…any ideas

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