AUD Technical Analysis: A Bullish Trend is Due

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AUDUSD Technical Analysis

After we repeatedly highlighted AUD should be should on every opportunity in the Forex market after missing the monthly entry to join the downtrend, there appears to be room for recovery. At this stage we will relate the anticipated gains in AUD as profit realization ahead of the end of 2014. What we also find attractive is another technical possibility for moderate gains in crude oil following the heavy losses that we have also forecasted.

AUDUSD Monthly Chart

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AUDUSD Technical Strategy, 12 December, 2014

AUDUSD Monthly Chart 12/12/14

The monthly chart shows the top Head-And-Shoulders (H&S) that was confirmed upon a break below the neckline at the monthly close, which signalled the selling may continue.  The progress of top H&S is partial gains that will paint higher highs and lower lows .On most occasions, the corrective gains will continue until the right-hand shoulder resistance or held by the former neckline. We are perfectly aware the next monthly support is at 0.8022 but based on our experience, the expected gains do not have reach the support line before correcting higher. In order to find an entry we must turn to the intraday time frames.

After a deep exploration we may conclude there is no decisive intraday entry in AUDUSD. aside the hourly support line, which in fact turn into reversed H&S.

AUDUSD 1 Hour Chart

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AUDUSD Trading Strategy, 12 December, 2014

AUDUSD 60 Minutes Chart 12/12/14

We have decided to attempt a long trade in AUDUSD with a relatively tight stop loss order to capitalize over corrective gains that are expected in the monthly chart. We are executing a long trade at market price, protective stop layered at 0.8216, targeting 0.8634.

GBPAUD Technical Analysis

We have also discovered an intraday entry in GBPAUD hourly chart that we would like to capitalize on. The short trade however does bear a greater risk due to the upcoming data from the UK at 09:30am GMT and the stop size.

GBPAUD 1 Hour Chart

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GBPAUD Trading Strateg, 12 December, 2014

GBPAUD 60 Minutes Chart 12/12/14

We have decent intraday conditions for executing the short trade. Please note the price may reach 1.9044 before reversing lower. We are executing the short trade in GBPAUD at marker price, protective stop layered at 1.9104, targeting 1.8795. Updates on the trades will be made at the bottom of this page. Subscribe if you wish to be notified when such updates are made.

If our trading strategy meets out expectations, the gains are likely to be seen as early as next week (weekly close). We choose to enter at current price as there moderate gains in today’s session cannot be overruled. We are however expecting to profit by the beginning of next week. The strategy is completely technical and has no fundamental strings attached to it aside end of year profit realization. If you are new to the market, it means traders have sold AUD earlier this year will close their trades to book profits, which may create strong gains in AUD pairs and crosses.

12/12/14 UPDATE: Due to instant profit in GBPAUD short trade, we are closing 10% of the position at market price (1.8965).

15/12/14 UPDATE: GBPAUD short trade was stopped out on Friday while AUDUSD long trade was stopped out at the opening of the Forex market. AUD has since corrected higher, trading at 0.8253 against the US Dollar at the time of this writing. Our bullish outlook for the Australian Dollar has not been negated, however, we may experience difficulties in joining the expected trend. When we do discover any entry it will be published in ‘Trade Alerts.’

22/12/14 UPDATE: We have initiated a new AUDUSD trading strategy.

AUD Technical Analysis: A Bullish Trend is Due
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AUD Technical Analysis: A Bullish Trend is Due

                                             AUD Technical Analysis: A Bullish Trend is Due

AUD Technical Analysis: A Bullish Trend is Due