AUD/USD Forex Signal - 25 January 2016

AUD/USD Signal Update

Last Thursday’s signals were not triggered and expired as there was no bearish price action at 0.6957.

 

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken from 8am New York time until 5pm Tokyo time.

 

Long Trade 1

* Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6957.

* Place the stop loss 1 pip below the local swing low.

* Adjust the stop loss to break even once the trade is 20 pips in profit.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7048 and 0.7072.

* Place the stop loss 1 pip above the local swing high.

* Adjust the stop loss to break even once the trade is 20 pips in profit.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

AUD/USD Analysis

I wrote last Thursday that this pair was due a bullish pullback which would be confirmed by a break up above 0.6950. This is exactly what happened, but the price turned around on Friday just short of 0.7048 which marks the start of a zone that has acted as effective resistance for the past few weeks. It looks as though we will chop around for a while today. But as long as the support at 0.6957 holds, the pullback will continue and we may then break up past the zone and reach 0.7150.

AUDUSD

There is nothing due today concerning the AUD or the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.