Short position on AUDNZD may be one of the most interesting positions in near future. To understand wider view let’s take a look at weekly time frame. We can spot bearish trend and strong correction ended on key resistance level which is last top. It looks like way south is open for investors.
On D1 we can see breaking important support. Strength of this break gives us clear signal – bears are dominating. The closest target is at least level of previous low – 1.0575. We have about 100 pips of potential profit till this level.
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Let’s take a look at zoomed daily chart. It also looks bearish. Breaking last level and current re-test where we can already find series of candles with long upper wicks. It is another signal of continuation of decreases.
How to earn in this position? On H1 chart we can see triangle patter, if it will be broken below there will be continuation of strong decreases. Strategy is quite simple – we wait for this break. We can play it immediately or after next correction after breakout. You should set quite reasonable SL, so TP at 1.0575 will give profit few times greater than risk. I think we should look for sell signals at lower time frames, especially if we want to play re-test scenario. Do not forget about setting SL, market not always works as we think it will.