AUDNZD has been in a bear trend start of 2013, with big plunge from April.
The consolidation period lasted about 4 years though.
From the big picture analysis, I am looking at a huge 2 decades’ worth of ED channel
with price travelling from the top to bottom of this channel.
Whether price breaks this channel or not is story for another day, but right now I am looking monitoring price action at d1 chart from an identified w1 resistance level.
Many a times, the 52-weeks levels identified has price reacting to it.In the D1 charts,
price actually stalled for 4 months below closing below and plunging another 300 pips.
It is this type of confluence which gives confidence for trades to be placed.
As price comes to the current resistance , I will therefore need to see bearish signs before I can proceed to go short.
This trade will be trading with trend.
1) The previous resistance identified has been proven, and a d1 bearish engulfing bar has signaled trend continuation , flushing a previous 4 days high as well. An intra-day retracement will be good for entry.
see how price has begun to respect the big 13TL, but to long is still too prematured yet.
Even the bear trap 2 x h1 low is still a super CTT long