AUD/USD Forex Signal - 7 January 2016

AUD/USD Signal Update

Yesterday’s signals expired without being triggered.

 

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

* Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7005.

* 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 0.6907.

* 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 0.7072.

* 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 0.7159.

* 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

We are in a very strong “risk off” environment right now, and as what is very much a risk currency, and a commodity currency, the AUD is getting completely hammered right now. The USD and especially the JPY are strong so this pair is moving down fast, cutting through another supportive level at 0.7072 and flipping it to resistance, although we can see that the support at 0.7000 still has not been breached and if we do get some bounce back in the stock markets then 0.7000 could be a good launching pad for a long. However the safer trades are with the trend which is very much down.

AUDUSD

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. As for the AUD, there will be a release of Retail Sales 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.