The AUDNZD rallied from its support level as visible in this H1 chart and was halted by resistance. This pair has now formed a hammer at resistance which is a bearish sign. We believe this pair will trade down to its 50 DMA over the course of this week.
MACD shows that momentum has reached its previous top as the moving average is stuck at that level. RSI is trading in and out of extreme overbought territory and a breakdown from this level should accelerate the sell-off into its 50 DMA.
We recommend a short position at 1.2335 with a potential second entry level at 1.2450. Should this pair breach the 1.2385 level we advise traders to place a stop buy order before adding new short positions to this trade.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 1.2400. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2295.
