Daily Price Action
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AUDUSD Is a Buy Above 0.7240, But Not Before

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On February 19th I discussed the AUDUSD.

More specifically, I pointed out how the January 3rd bounce may be indicative of a bottom.

The fact that AUDUSD bounced from new trend line support from the 2018 high was a big deal.

However, since the January 3rd bullish pin bar, the price action has been uneventful to say the least.

In fact, AUDUSD has made no progress since January 9th.

But despite the lack of direction, I have to take a slight bullish bias as long as that January 3rd pin bar is intact.

Now, here’s the key to that thesis…

Buyers need to clear trend line resistance near 0.7240 on a daily closing basis.

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That last part is critical. It isn’t enough for the pair to pierce the level. We need to see a daily close above it to confirm the breakout.

Attempting to buy AUDUSD before that happens is far too speculative and risky in my opinion.

And as for shorting AUDUSD, I think that too is too risky given the recent sideways movement coupled with the January bounce from new support.

To summarize: I’m neutral while the pair is below 0.7240, but I am willing to turn bullish following a daily close above the level.

Key resistance above 0.7240 isn’t far away at 0.7320. However, a close above trend line resistance could be the beginning of a broader rally.

Alternatively, a move lower would likely encounter bids near 0.7060.

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AUDUSD bounce from new support level

Leave a Comment:

19 comments
Fabio alves says

I’m already buying

Reply
    Justin Bennett says

    I think it’s too soon, but good luck.

    Reply
saif says

good sir world need awesome people like you
thanks

Reply
Anas says

Thank you sir for the great analysis..

Reply
    Justin Bennett says

    My pleasure. Thanks for stopping by.

    Reply
Adebayo saheed says

Thanks….All your points are well Noted Sir

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Praise says

Nice one there… Thanks sir

Reply
isaac OHIOKHAI says

this is lovely. i will keep checking and prepare to place a trade once is above. Thank you sir

Reply
    Justin Bennett says

    That’s probably the best way to approach it.

    Reply
DESTINY ISIBOR says

What a powerful analysis. I truly wish I met earlier. God bless you abundantly.

Reply
    Justin Bennett says

    Thanks for the support.

    Reply
Colin says

.729 previous high also confirms this zone that has to be overcome

Reply
nhlaks says

hi justin, once again great post bro.. short but informative. im commenting on this post because i don’t know how else to reach u. i want to take advantage of the february sale and buy membership but i don’t have a credit card, just a normal debit card. i have the funds though. what other methods of payment could i try?

Reply
    Justin Bennett says

    I only accept PayPal or major credit card.

    Reply
Ronald says

Complete downtrend , no way!

Reply
    Justin Bennett says

    That sounds similar to what I heard about GBPUSD in January when the pair was 800 pips lower from where it is today.

    Reply
TeSa says

It forms an SKS

Reply
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