AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- AUD/USD falls to 0.66128, facing a bearish trend within a downward channel.

- Technical indicators suggest oversold conditions, with RSI at 28 and MACD near flat.

- Traders could consider a bearish stance with specified entry, profit, and stop loss levels.

On January 16th, the Australian Dollar (AUD/USD) exhibited a notable decline, dropping by 0.71% to a current level of 0.66128. The 4-hour chart analysis reveals a pivot point at 0.6557. The AUD faces immediate resistance at 0.6602, followed by 0.6644 and 0.6688. On the downside, support levels are identified at 0.6509, 0.6466, and a seemingly out-of-place 0.6734, which may need correction.

The Relative Strength Index (RSI) is notably low at 28, indicating that the AUD/USD is potentially oversold. The Moving Average Convergence Divergence (MACD) shows a value of -0.001, with the signal line at -0.00182, suggesting a lack of strong directional momentum. The 50-day and 200-day Exponential Moving Averages (EMAs) are at 0.6654, further indicating potential resistance points.

A key pattern on the chart is a downward channel, reinforcing a bearish sentiment for the AUD, particularly below the 0.66333 mark. This trend suggests that the AUD is currently in a selling mode.

In conclusion, the short-term outlook for the AUD/USD pair appears bearish. Traders might consider a sell limit at 0.66333, with a take profit target near 0.6509 and a stop loss around 0.6688. However, given the oversold conditions, caution is advised as reversals are possible, especially if the pair tests and breaks above key resistance levels.

AUD/USD - Trade Ideas

Entry Price – Sell Limit 0.66333

Take Profit – 0.65752

Stop Loss – 0.66675

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$581/ -$342

Profit & Loss Per Mini Lot = +$58/ -$34