The AUDNZD has been trading within its bearish price channel as visible in this H4 chart. Current price action trades around its declining resistance level and close to its declining 200 DMA. We believe this pair will reverse and correct back down to its declining support level.
MACD shows momentum is bearish, but has shown improvement over the past few sessions. Nevertheless the recent spike is neither confirmed by momentum nor volume. RSI is approaching overbought territory, but given the fast acceleration in price action it may not break into overbought territory.
We recommend a short position at 1.2530 with a potential second entry level at 1.2620. Should this pair break above 1.2580 we advise traders to hedge their initial position before adding new short positions to their trade.
Traders who wish to exit their position at a loss are advised to place their stop loss level at 1.2600. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2430.