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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, the price which is moving higher has currently reached a key resistance zone, respected it and is bouncing lower from this zone. This key resistance zone is formed by the 61.8%(1.10246) Fibonacci expansion level of the first wave. In addition to this, we could see that the price has created a bearish hidden divergence between the first high formed at 1.10447 and the second high formed at 1.09374, followed by a continuing bearish divergence between the first high that has formed at 1.09374 and the second high that has formed at 1.10319 based on the MACD indicator, which we may consider as evidences of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
On the H4 chart, the price which is moving higher has created a false break with a bearish divergence that has formed between the first high that has formed at 1.10304 and the second high that has formed at 1.10319 based on the MACD indicatorwhich we may consider as evidence of bearish pressure. In addition to this, based on the Parabolic Sar, we could see that the dots are above the price which we may consider as yet another evidence of bearish pressure. If the price breaks below the last low at 1.09283 with momentum I may then expect short term bearish moves to happen here. Alternatively if the price moves higher breaks and holds above the key resistance zone (marked in red) shown in the image below, then this bearish view will be invalidated.
AUDNZD D1(Daily) Chart Analysis
AUDNZD H4(4 Hours) 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 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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Happy Trading!
Arvinth Akash
Home Trader Club Team.
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