The AUDNZD has always been one of my favorite pairs. Probably because they are both commodity pairs and I’d love to live in either place. It’s always struck me as an inner battle for supremacy. Luckily for us, its now a great setup. The main thing that stuck out to me was the recent double top. This will work in our favor. Also, there has been a series of lower lows and lower highs, indicating a downtrend. On top of that, we just had a really simple candlestick pattern called the bearish engulfing pattern. I’ve used this before for an entry. Finally, this pair just retraced back to a strong resistance area and way rejected.
I will be entering short at the market rate when this opens. If it gaps lower, then I will wait for the gap to close. If it gaps higher then I’m jumping on this like a crazy person to get a better risk/reward. You can find my entry and targets below. Have a wonderful week.