AUD/USD Forex Signal - 5 December 2016

AUD/USD Signal Update

Last Thursday’s signals produced a profitable short trade following the bearing engulfing pin candle on the hourly chart rejecting the identified resistance level at 0.7432.

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

  • Go short following some bearish price action on the H1 time frame immediately upon the first touch of 0.7464.

  • 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.

 

Long Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the first touch of 0.7400.

  • 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.

AUD/USD Analysis

This pair is best described as in a broad long-term consolidation pattern, but with quite large swings. This makes it a good candidate for trading support and resistance.

There is a lot of resistance above 0.7450.

The AUD news due later could push the price out of its range.

AUDUSD

Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Regarding the AUD, there will be a release of the RBA Rate Statement and Cash Rate at 3:30am.

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.