AUD/USD Forex Signal - 27 December 2016

AUD/USD Signal Update

Last Thursday’s signals produced a losing long trade following the bullish engulfing candle rejecting the support level identified on the hourly chart.

 

Today’s AUD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hours period.

 

Short Trade 1

* Short entry following some bearish price action on the H1 time frame immediately upon the first touch of 0.7222.

* 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.

* Remove 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 1

* Long entry following some bullish price action on the H1 time frame immediately upon the first entry into the zone between 0.7150 and 0.7144.

* 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.

* Remove 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

I wrote last Thursday that that the price was heading for 0.7200 and so it proved to be. In fact, the price ended up going even lower. The Australian Dollar has recently been one of the more bearish currencies against the U.S. Dollar, which is a turnaround from recent weeks where it had stood out showing some strength.

The trend is bearish but there could be long-term buyers stepping in close to 0.7150.

The resistance at 0.7222 looks very attractive to short.



AUDUSD

There is nothing due today regarding the AUD. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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.