AUD/USD Forex Signal - 10 January 2017

AUD/USD Signal Update

Yesterday’s signals produced a profitable short trade following the bearish engulfing candle rejecting the resistance, but it only made the minimum 20 pips of profit before turning around and stopping out.

Today’s AUD/USD Signals

Risk 0.75%.

Trades must be taken after 8am New York time and before 5pm Tokyo time, during the next 24-hours period only.

 

Short Trade 1

  • Go short following some bearish price action on the H1 time frame immediately upon the first touch of 0.7369.

  • 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 Trade 1

  • Go long following some bullish price action on the H1 time frame immediately upon the first touch of 0.7254.

  • 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.

 

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

AUD/USD Analysis

The AUD has turned less bullish after meeting and failing to hold above key resistance at 0.7369. There was also disappointing Australian economic data released during the Asian session which did not help.

This remains one of the more bullish USD pairs so what happens next should be largely down to how the market feels about the greenback.

There may be minor support at about 0.7290.

AUDUSD

There is nothing due today regarding the USD or the AUD.

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.