AUDUSD Daily Outlook for 9th December, 2013 (Monday)

AUDUSD Daily Outlook for 9th December, 2013 (Monday)

Daily Chart - 

"In down trend, however due for retrace before continuing"

On Friday we have recovered most of the drop in AUD/USD from mid week, Closing the day with a minor Pin bar candle. As per my Thursday analysis I recommended a long trade due to few confluences, which worked out quite well.

Some notes to consider

• The downward trendline is still in play, and looks like its going up to test the trendline before continuing (Around the 0.920-0.925 area)
• Minor Pin Bar (not the perfect pin bar), meaning a reversal
• Divergence still in play (identified on Friday)

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Weekly Chart - 

"In down trend, however have a stronger pin bar showing compared to daily"

*We only provide a weekly chart for the beginning of each week

We ended the week pretty much the same as we opened, and have produced a good pin bar. And the weekly candle pretty much confirmed our view on the daily chart.

• Stochastic is turning and about to cross

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Hourly Chart

"Breakout of the downward trendline, and also a huge pin bar".

After Fridays price action after the US data release, it have given us a huge huge pin bar when it reached the 0.89850 level, and giving it a whiplash event in price. This kind of reaction means there are huge buyers whom have enough power to push it back above the 0.91 on Friday close.

• Pin bar reversal candle
• Broke out of the downward trendline
• A retest of the prior resistance which became support is a good entry for longs.
• Note there is a new upward trendline drawn

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Outlook Trade opportunity

In early asian session, there is important China's economic data to release, this will impact the Aussie dollar. So a word of caution when trading.
What i would like to see is a negative number which could drag the Aussie to Monday's Daily Pivot / 0.90850. where we could go long if price action is confirmed in a 15min/30min chart.

Long from Daily Pivot / 0.90850 -0.90600 (range is 15pips), please keep stops at least 15pips below 0.90600

Target - TP1 Fridays R1, then trail to Friday's high, and upwards

Risk Level - Low

Tips -

Always take note of any economical news event on our provided calender below