The first trading opportunity in 2016 from me is to short the AUD/USD pair. Let's take a look.

Hello traders! How are you? I hope you guys enjoyed your holidays. It's 2016 and hopefully we will be more successful in trading!

So, the first trading opportunity in 2016 from me is for the AUD/USD pair. Let's take a look:

audusd
That is the AUD/USD pair on 4H chart. I drew a trend line and we can see the trend is clearly a downtrend. The Aussie dollar has been performing so badly since the beginning of this year and this situation is still going. The pair has broken the psychological level at 0.7000 which supposed to be a strong support.

For traders who trade divergences, they would notice there is a clear bullish divergence on 4H chart as I drew on the picture. This is where it gets interesting. We know that the price is near the strong support and we see the bullish divergence, normally I will suggest BUYING this pair but not today.

The trend is still a strong downtrend even though the price has broken the trend line. In fact, the AUD/USD's sentiment is still bearish. I believe the bullish divergence this time will not be a good signal to follow.

So what is our move now? Well, we all know that the Aussie Dollar is still struggling now and is still dependent on China's economic situation then it would be a good idea to go SHORT on this pair, following the downward movement.

There is also Bearish Hidden Divergence on 4H chart plus Bearish Engulfing candlestick pattern which give us a signal to go SHORT.

Position: SELL around 0.6985
SL & TP: around 0.7030 & 0.6930

I will keep looking for the price movement. If ONLY the price manages to move up and breaks 0.7030 level, I will change my position into BUY position.

Good Luck, Happy trading!

RICO FY