FX:AUDNZD   Australian Dollar / New Zealand Dollar
After breaking above the upper channel of consolidation at ~1.1035 on the daily chart and rallying into previous resistance at ~1.1185, is it time for a retracement back into the moving averages with today's bearish reversal bar? RSI bearish divergence seems to warn so in addition to the Fibonacci extension levels where price has reached 200% of the previous swing points. Other than that, price appears overextended, visually.

Capturing the downward cyclicity on smaller times frames offers a handsome reward:risk. The anticipated move down is into the previous consolidation area at ~1.1035 where price also has to opportunity to connect with the 50 ema and look long again, on the daily timeframe . Hence, shifting focus to collect points on the way south on the 60 minute chart, there is visibility of successive lower highs and lower lows.

Entry into a short position on this setup, on the 60 minute or 15 minute chart, is at the low (labelled on the chart) (~1.1157), with a stop loss, preferably above the high. However, since I am viewing this chart now, I would enter at the same level (since presently price is retesting this level, otherwise I would give it a miss) with a tighter stop above the lower high following the high. Potential reward:risk = 4:1.

Some basic housekeeping on this trade would be to trail the stop loss above previous highs upon seeing a new low and lower high (from the previous high).
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out