AUDNZD has had a strong Bullish move on the H4 chart. However, the price seems to have found a strong level of Resistance as well. The price had a rejection from that level earlier. Moreover, it seems that the level is going to produce a Double Top around that Resistance level as well. Thus, a breakout towards the downside would attract the sellers to sell the pair later today. Let us have a look at the H4 AUDNZD chart.
Have a look at the chart. After being Bullish the price came down by producing three consecutive Bearish candles. It has been going up again, but the last H4 candle shows the sign of a reversal. If the current H4 candle engulfs the last H4 candle, then the sellers would wait for an H1 breakout at the level of 1.06185 to take the short entry. Let us have a look at the summary of the trade…
- Entry- H1 breakout at 1.06185
- Stop loss- above 1.06490
- Take profit- 1.05460
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
By looking at the chart, it seems that the signal might come at GMT 11.00 GMT. The best signal would be the last H1 candle of the current H4 candle has to be a strong Bearish candle and the first H1 candle of the next H4 candle has to make the breakout. This is where this kind of setup gets maximum liquidity. Thus, it does not take long to hit the target. However, the risk and reward ratio in this setup is 1:1 though.
AUDNZD Price Action Analysis – 20th April 2018
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