AUD/USD Weekly Signal- Dec. 19, 2013

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By: John Ursus

AUDUSD Signal 121913

Timeframe: W1 Recommendation: Long Position
Entry Zone: 0.8850 – 0.8875 
Take Profit Zone: 0.9450 – 0.9500
Stop Loss Zone: 0.8600 – 0.8625

The AUDUSD has sold off heavily before launching a reversal rally which was partially fueled by short-covering which allowed this currency pair to visit its Fibonacci retracement levels before resuming its correction.

This currency pair has now formed a double bottom formation which could initiate a reversal once again fueled by short-covering as a double bottom is a bullish chart pattern. The downside risk is rather limited around current levels and trader should anticipate a reversal over the next few trading weeks.

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.