AUDNZD has been having a strong Bearish trend on the H4 chart. The price has kept making lower lows by obeying a down trending Trend line. Today’s first H4 candle came out as a Bullish corrective candle. The next one came out as a Doji candle. The current H4 candle might come out as another Bullish corrective candle since there is a strong level of Resistance just a bit further up. If we get an H4 Bearish Engulfing candle and get an H1 breakout towards the South later, then selling the pair would get us some green pips.
The level of 1.08900 is a key level, which should be tested by the price. If this level is held and it produces an H4 Bearish Engulfing candle, then we should prepare ourselves to go short on the pair upon an H1 breakout at the level of 1.08500. The breakout would lead the pair to go towards the level of 1.07880 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.08500
- Stop Loss: 1.08900
- Take Profit: 1.07880
- 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
It is “Labor Day” in the US and Canada today. Thus, the USD might get a bit sluggish today. This might lead all other pairs to get sluggish too. However, AUDNZD pair is not directly related to the USD. Let us now see whether the breakout happens on the pair or not. It is less likely to happen though. However, if the breakout does take place, then the price would head towards our target level nicely.
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