Hi Traders! Today I am sharing with you the AUDNZD forecast and technical analysis post. In this pair, multi-time frame analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. The platform in which we perform this multi-timeframe analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. We will start our analysis from the highest timeframe now which will be the daily chart here.
On the daily chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for is happening in the form of consolidation. While measuring the big and small waves inside this consolidation using the Fibonacci expansion tool we could see that the 61.8% (1.07990, 1.08134) Fibonacci expansion levels of both these waves coincides with the top of this consolidation. Thus making this area a key resistance zone for us. The price which was moving higher reached this key resistance zone, respected it and is currently moving lower from this zone. So everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
On the H1 chart after the strong bearish move, currently, it looks like a correction is happening in the form of consolidation. While measuring the first wave inside this consolidation using the Fibonacci expansion tool we could see that the 61.8% (1.07686), 100% (1.07823) Fibonacci expansion levels of the first wave coincides with the top of the consolidation which makes this area a strong resistance zone. Until this strong resistance zone holds my view remains bearish here and if we get a valid breakout below the bottom of this consolidation we may consider it as a validation for the bearish view and may expect the price to move lower further.
AUDNZD D1(Daily) Chart Analysis
AUDNZD H1(1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
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