Daily Price Action
Shares

AUDUSD Shorts Are Playing With Fire

Shares

The AUDUSD has had a heck of a run since early November.

Even after today’s pullback, the pair is up a considerable 520 pips.

And if we measure from the March low, the Australian dollar has gained just over 2,000 pips against the USD.

We last reviewed the AUDUSD when it was breaking above the 0.7400 area on December 11th.

And if you’ve followed me for a while, you know that I’ve liked AUDUSD higher since the pair’s early November breakout.

But no uptrend is complete without pullbacks.

They’re a natural and healthy occurrence in any uptrend.

However, retracements like today’s are also where most traders go astray.

Many retail traders see today’s price action on the AUDUSD and immediately start looking for ways to short the pair.

Those traders are swimming against the current.

AUDUSD weekly time frame

As you can see from the weekly time frame above, the AUDUSD uptrend is alive and well.

So, why would a trader try to short such a bullish market?

It probably has a lot to do with the fact that most retail traders that I hear from are stuck on the lower time frames.

The 5-minute chart makes any pullback look like the start of a downtrend.

Looking at the daily and weekly AUDUSD chart, it’s clear that buyers remain in control.

Of course, if the pair were to take out 0.7400 on a daily closing basis, that would start to alter my bias.

For now, though, looking for buying opportunities from AUDUSD remains the path of least resistance.

Key support and resistance for AUDUSD are 0.7400 and 0.7750 respectively (see chart above).

Immediate support for the pair is near 0.7500 with 0.7640 providing local resistance.

I continue to like AUDUSD higher to 0.8100 in 2021.

Want to Watch the AUDUSD Video I Just Released to Members?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in December!

AUDUSD daily time frame

Leave a Comment:

6 comments
Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 4,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in December!

Reply
Martin Njeru says

DEAR SIR THE PAIR CANT GO TO 0.8100 WITHOUT CORRECTION SO IT WILL FILL THE GAP FOR TO DAY THE PUSHES ANOTHER LOW, I DO EXPECT A BULLISH FLAG SCENARIO TO PLAY OUT, SO PULL BAC WILL OCCUR AGAIN EVEN EURUSD WILL HAVE ANOTHER PULL BACK TODAY IT WILL FORM A HANGING MAN NOT PIN BAR, MARK MY WORDS ALTHOUGH LONG TERM TREND IS BULLISH

Reply
    Menhya Moses says

    Martin Njeru..your over confidence with be your down fall ..i see alot of emotions in your analysis….the market is a tide ..we just

    Reply
Lutta says

I also maintain a bullish bias on this pair. The 10 day ema is acting as dynamic support and in my opinion its unlikely we’ll get a daily close below it today. I have my next immediate resistance around 0.7670. However, I do expect bulls to push higher. My trading has really changed since I started focusing on the higher daily and Hr4 timeframes. Thank you Justin for your articles.

Reply
stephen ifeanyi says

sir,
Its a fact that even my enemy can not contest wt me abt You…. You are indeed Forex genius . It hurts my soul that i can not afford pay for you to mentor me or to be a lifetime member , so as to gain immensely from you. i diligently pray for a miracle that will make you my mentor.
With a shattered heart as a result of the XAGUSD 15min pullback that happened today which cleared my acct(my 1yr savings).thereby killing me hope of enrolling as a lifetime member before the end of the promo (31/12/2020).
With tears in my heart, i strongly wish to let you know that i believe in you and your capacity in forex, You are a lord in forex world that i look up to. While i pray for miracle that will make me your student and you my mentor.
Your analysis are next to non. and i will and can never doubt any of it despite losing my acct today and hope of been enrolled.

Reply
ali says

thanks for the update.

Reply
Add Your Reply