AUDNZD - SELL IDEA

Elliott Wave aficionados may want to cast their eyes over the AUDNZD pair, where a SHORT scenario is unfolding. After the apparent end of a corrective wave (b), we are now witnessing what could be the beginning of an impulsive wave (c) to the downside, often characterized as the most dynamic and potent move in a corrective phase.

The price action has begun to decline from a recent peak, indicating that bearish momentum could be picking up steam. According to Elliott Wave principles, the (c) wave has the potential to match or exceed the length of wave (a), and Fibonacci extension levels of wave (a) offer insight into possible targets for this bearish move.

Currently, the potential for a SHORT trade is reinforced by the pair testing and rejecting off the 0.382 Fibonacci retracement level of the preceding move. A sensible entry for this SHORT position might be near the recent minor high, with stop-loss orders prudently placed above the start of wave (b). Targets for the trade could be set at Fibonacci levels such as 1.0 and 1.618 of wave (a).

This setup aims to exploit the forecasted descent in AUDNZD, leveraging the confluence of Elliott Wave theory and market sentiment. As always, maintaining flexibility and adherence to risk management principles is key.

Trade active:

going in the right direction