AUDNZD H4: The two scenario event.
Greetings!
AUDNZD as we mostly know, it's a great pair to trade and has proven to perform out rightly well in the market.
This market today on the 4H timeframe has positioned itself in a conflicting state that could prove fatal to any trader's account, if care is not taken during analysis.
The two scenario event displaying here in this market based off of PRICE ACTION is:
1. The continued formation of the downward channel
OR
2. The breakout event (potentials for fake-out traps)
1. The continued formation of the downward channel: Market may respect the present downward channel which began back in September after a fall from it August high at 1.10278. Respecting this channel would mean seeing a solid retraction with confirmation to the upside from the multi-month support zone at the "first threshold". This would see the Bulls take control of this market for a modest time before giving up control eventually.
2. The breakout event (potentials for fake-out traps): The break-out event is pretty obvious how events may turn out.
It may produce perfect breakouts, pullback and continued down move.
It may result in fake-out traps and you'd know what it means if you are caught in this spot.
The overall movement of this market for the past 3months is a decent downtrend.
THESE ARE MOST PROBABLE EVENTS BASED ON PRICE ACTION.
Suitable trading style:
1. Position trading
2. Swing trading
3. Transition trading
OVERVIEW
Before taking a trade on this market watch out for price action and seek multiple confirmations. Fundamental analysis would also play a key role in giving you concrete confirmations.
God Bless you!
I.D FOREX :)
AUDNZD as we mostly know, it's a great pair to trade and has proven to perform out rightly well in the market.
This market today on the 4H timeframe has positioned itself in a conflicting state that could prove fatal to any trader's account, if care is not taken during analysis.
The two scenario event displaying here in this market based off of PRICE ACTION is:
1. The continued formation of the downward channel
OR
2. The breakout event (potentials for fake-out traps)
1. The continued formation of the downward channel: Market may respect the present downward channel which began back in September after a fall from it August high at 1.10278. Respecting this channel would mean seeing a solid retraction with confirmation to the upside from the multi-month support zone at the "first threshold". This would see the Bulls take control of this market for a modest time before giving up control eventually.
2. The breakout event (potentials for fake-out traps): The break-out event is pretty obvious how events may turn out.
It may produce perfect breakouts, pullback and continued down move.
It may result in fake-out traps and you'd know what it means if you are caught in this spot.
The overall movement of this market for the past 3months is a decent downtrend.
THESE ARE MOST PROBABLE EVENTS BASED ON PRICE ACTION.
Suitable trading style:
1. Position trading
2. Swing trading
3. Transition trading
OVERVIEW
Before taking a trade on this market watch out for price action and seek multiple confirmations. Fundamental analysis would also play a key role in giving you concrete confirmations.
God Bless you!
I.D FOREX :)
Like i said we'll see the bulls take modest control of the market and we did. Currently they are out hence you could see the price consolidation on the upper trendline zone.
I propose a downward move (SELL TRADE) from this point to continue the downtrend. But the tendencies for an upside continuous move isn't totally eliminated, so be vigilant :)
Always sort for a confirmation!
Thanks..
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