AUDNZD had consolidated for a while on the daily chart. Yesterday’s daily candle closed below the support level, so the price may keep going towards the South today as well. The H4 chart shows that the price may have found a level of resistance. Today’s first H4 candle came out as a strong bearish candle followed by an Inside Bar. Thus, an H4 breakout at yesterday’s lowest low may offer us a short entry with a good risk and reward ratio. Let us have a look at the H4 AUDNZD chart. This trade idea was generated by our powerful Elite Swing Trader System.

After having support at the level of 1.06570, the price headed towards the North. The level of 1.06800 has been held as a level of resistance. The level has already produced a strong H4 bearish candle. The very next candle came out as an Inside Bar. If the price keeps pushing towards the downside and makes an H4 breakout at the level of 1.06570, then the price may continue its bearish move up to the level of 1.05840 with good selling pressure. Let us have a look at the summary of the trade...

• Entry: H4 breakout at 1.06570
• Stop Loss: Above 1.06800
• Take Profit: 1.05840

The price has enough space to travel towards the South. Since the daily trend is bearish, so the price may keep going towards the next daily significant support. When we want to trade at the H4 chart if the daily trend matches with the H4 chart’s trend that offers us some extra pips. On the other hand, if they do not match, the price gets less space to travel which eventually does not offer a lucrative risk and reward ratio. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about the Price Action Society.