The AUDNZD has been trading down in its bearish price channel as visible on this H4 chart. The pair currently trades at the declining resistance line from its bearish price channel. Given the fact that the formation is stable any rally should be limited to the declining resistance line.
MACD has been bearish and supported the formation. This indicates that further weakness should be expected after a brief rally. RSI has reached oversold territory and offers the final indication for an upcoming rally.
We recommend taking a long position at 1.2570. Monitor price action for a potential second entry point at 1.2515. Should this occur, traders are advised to hedge their initial long position with a short position using half the volume before adding to existing long positions.
Traders who prefer to take a loss are advised to place their stop loss at 1.2515. We do not utilize stop loss level and execute the trade as described above. Place your take profit level around 1.2615.