AUD/USD Forex Signal - 7 December 2017

Yesterday’s signals were not triggered, as there was no bullish price action at 0.7556.

Today’s AUD/USD Signals

Risk 0.50%.

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

Short Trade

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7556.

  • 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 run.

Long Trade

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7517, 0.7498, 0.7457, or 0.7445.

  • 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 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

Disappointing Australian Trade Balance data has pushed the price of this pair down further. The technical picture is clearer and looking more reliable, with the price using a broken trend line as resistance. Several major support levels are now in view, with the level close to the psychological level of 0.7500 looking attractive if there is a major bullish reversal there. Nevertheless, there seems to be a lot of bearish momentum, and with the U.S. Dollar generally strong it looks likely that the pair will fall further, so I take a mildly bearish bias over the short-term.

AUDUSD

There is nothing important due today concerning the AUD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.