AUD/USD Forex Signal - 6 January 2016

AUD/USD Signal Update

Yesterday’s signals were not triggered as we had no bullish price action at 0.7154.

 

Today’s AUD/USD Signals

Risk 0.75%

Trades must be made between 8am New York time and 8am 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 0.7005.

* 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.

 

Long Trade 2

* Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6907.

* 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 touch of 0.7159.

* 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.

 

Short Trade 2

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

* 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.

 

Short Trade 3

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

* 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

The USD is very strong everywhere and the AUD has been falling more strongly than just about any currency. The pair is slicing through support like a hot knife through butter. However there are signs we may be beginning to stabilize now at the support level of 0.7072. What happens next will be driven by the large amount of USD data due later today once New York opens, culminating with the FOMC Meeting Minutes. If there are any big surprises we could see some large swings. Shorts at any sudden moves up to resistance levels that begin to turn bearish again are probably going to be the best trading opportunities unless the FOMC Meeting Minutes turn out to have any big dovish surprises.

AUDUSD

Regarding the USD, there will be a release of the ADP Non-Farm Employment change at 1:15pm London time, followed by Trade Balance data at 1:30pm and ISM Non-Manufacturing PMI data at 3pm. Finally there will be a release of the FOMC Meeting Minutes at 7pm. As for the AUD, there will be a release of Building Approvals and Trade Balance data at 12:30am.

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.