AUD/USD Forex Signal - 20 December 2016

AUD/USD Signal Update

Yesterday’s signals produced a losing long trade following the bullish price action at the support level identified at 0.7244.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time until 5pm Tokyo time only, 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 0.7269.

  • 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.

 

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the first touch of 0.7228 or 0.7200.

  • 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.

AUD/USD Analysis

I wrote yesterday that although the action was looking bearish, the area between 0.7269 and 0.7228 was likely to be very supportive in the short-term. So far, I am wrong, as although the price was held up it now seems to be poised to advance down to 0.7228 and possibly 0.7200 beyond that. It may be that 0.7244 holds as support, and if the price mostly remains above there for the next day or so it will be a bullish sign.

The respective currencies in this pair are weak and strong so be very careful with taking any longs, you should see a very strong bullish bounce first before taking any long trades.

AUDUSD

There is nothing due today concerning either 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.