Hi Traders! AUDNZD technical analysis and short term forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
AUDNZD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence, RSI Indicator
On the daily chart, the price which is moving higher has reached a key resistance zone formed by the 100% (0.64413) Fibonacci expansion level of the first wave and the 50%(1.06122) – 61.8%(1.06909) Fibonacci retracement levels of the the strong bearish move. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 1.06117 and the second high that has formed at 1.06497 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, we have this bearish divergence on the RSI indicator as well which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until this key resistance zone holds my short term view remains bearish. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
AUDNZD H4(4 Hours) Chart Analysis – Range, Bearish Divergence
On the H4 chart, the price is currently moving inside a small range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the top of it and is bouncing lower. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 1.05359 and the second high that has formed at 1.06497 based on the MACD indicator which we may consider as evidence of bearish pressure. If we get a valid breakout below the strong support zone (marked in blue) we may then consider it as a validation for the bearish view and may expect the price to move lower further in the short term.
Technical Analysis & Forecast Summary
AUDNZD D1(Daily) Chart Analysis
- Key Resistance Zone, Bearish Divergence, RSI Indicator
AUDNZD H4(4 Hours) Chart Analysis
- Range, Bearish Divergence
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term 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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Arvinth Akash
Traders Academy Club Team
