AUD/USD Forex Signal - 5 January 2016

AUD/USD Signal Update

Yesterday’s signals were not triggered as there was no bullish price action at 0.7200 and the price did not quite reach the anticipated support level at 0.7154.

 

Today’s AUD/USD Signals

Risk 0.75%

Trades may only be taken from 8am New York time to 8am Tokyo time.

 

Long Trade 1

* Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7154.

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

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

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Long Trade 2

* Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7072.

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

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

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7214.

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

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

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 2

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7245.

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

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

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 3

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7272.

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

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

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

AUD/USD Analysis

The bearish move continues, as we break through another support and print a new resistance line at 0.7214 above. It looks like the bullish tilt has really gone now and we should take a longer-term bearish bias with this pair. There are plenty of support and resistance levels nearby.AUSUSD

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.