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).
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