Trade Breakdown – AUDUSD Long December 2019

*Reviewing the simplest of trend continuation trades on the AUDUSD FX currency pair*

Happy new year! Welcome to the first blog post of 2020. Let’s get right in to it and look at my last trade of 2019 that I entered just before Christmas and am still holding a small position on.

This trade is an excellent example of how simple your analysis can be and that just buying the dips of an established trend is definitely an acceptable way of trading. I covered the pre trade analysis of this trade in a previous blog post which can be found by clicking here.

As always, you can track the progress of this trade from entry through to current trade management by going to the TradingView platform by clicking on the link below.

Trade Details:

  • Instrument: AUDUSD FX Currency Pair
  • Direction: Long Trade
  • Entry Date: 17/12/19
  • Potential Return: 4.33R
  • Returned Locked In: 3.33R (0.23% long exposure open)
  • Duration: 16 days
AUDUSD daily timeframe chart
(pre trade analysis)

The higher timeframe analysis was simple. The weekly timeframe chart shows heavy selling for almost 2 years and largely oversold conditions. On the daily chart (above) you can see the support zone at 0.67000 became very strong in the later months of 2019 and price is now beginning to climb upwards on the higher timeframes. New higher highs are being made with each new bullish wave.

AUDUSD 4 hour timeframe chart
(pre trade long position entry)

My long position entry was an intraday trend continuation entry. What this means is that I was buying the dip on the established bullish trend. By using multiple confluences such as the trendline tool, intraday support/resistance zone analysis and the fibonacci retracement tool I attempted to predict the new higher low and get a discounted entry to buy in on the trend.

If you have not yet learnt how to spot intraday support and resistance zones then I highly recommend you read the following blog posts.

Let’s look at how the trade went after my long position market order executed.

AUDUSD 4 hour timeframe chart
(long position take profit level reached)

Price went on to retest the 0.68500 support zone multiple times until it eventually found support there once again and began to climb. A nice large 4hr bullish momentum candle closed and then price continued on its way up to make new higher highs on the current trend.

I have shown you my partial profit taking level at 0.69800 which I used to take approximately 3/4 of my open profit to lock it in. I am still holding a small amount of long exposure on AUDUSD to assist with scaling in positions in future and also, to take advantage if price continues to slowly climb over the next few days.

Future Price Predictions & Trading Opportunities:

With the current bullish trend now well established and new highs made again. I am looking to continue to buy in on the dips and get discounted entries on the increase in AUD $ vs the USD.

AUDUSD 4 hour timeframe chart
(possible trade entry)

The chart above shows my next potential long trade entry. I want price to sell off from the current highs and come back down to retest the previous intraday support/resistance zone at around 0.69250. Also in this zone is the bullish trendline that has supported price multiple times previously and the 0.618 fibonacci retracement level.

You may notice that this future trade set up is almost exactly the same as the analysis of the current AUDUSD I explained to you in this blog post. That is because it continues to work time and time again.


Useful Links:

All my technical analysis is done using the TradingView platform. You can get access via the link below.

My preferred broker of choice is IC Markets. Low spreads and trading costs really help long term profitability. A link to their site is below.

Thanks for reading and please don’t forget to LIKE, SHARE and FOLLOW my blog to stay up to date with the latest market analysis and trading education posts.

DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close